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  Labour

Introduction to Labour cost audit program

(a) Proper use of labour and increase in productivity are at present receiving greater attention. Various Productivity Teams have emphasised great significance on higher productivity. So it is necessary to assess performance competence of labour and compare it along with the standard performance, so that labour use could be progressively enhanced. Labour force in Indian industries is usually extremely high compared to identical types of industries and other developed countries. Our purpose should be to reach that level, though essentially not immediately but over a period. A study of this nature would provide an idea in which inefficiency lies so that timely and sufficient steps could be taken to make sure maximum use of labour and to reduce labour cost.

(b) Labour cost is allocated to dissimilar jobs with reference to time or job cards.

 

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