Skip to content

CA Inter doubt

How come the answer contains (i)+(iii)+(iv)+(v), and why not wages paid?

Image attached to the doubt: How come the answer contains (i)+(iii)+(iv)+(v), and why not wages paid?

Asked by Harshit19 Aug 2024481 views

5 answers

  1. Harshit · 19 Aug 2024

    @Akash thanks

  2. AKASH · 19 Aug 2024

    I can understand you, But remember one thing - wages is also an expense and it is directly traceable per unit. Then How is it traceable per unit ? Example : a chef who cooks food in a restaurant. Think this example in your mind and you'll understand why is it traceable per unit Think factory workers as chef. Ok now why is it classified as direct labour instead of direct expense even though it is really a direct expense. Answer:- because without chef can the food even be prepared , entire restaurant itself will be vanished So chef plays a major role , so that's why a seperate head is created for chef known as Direct labour even though it is a direct expense only due to the reason that to get better differentiation of chef from other expenses.

  3. Aditya · 19 Aug 2024

    No direct wages come under direct labour not under direct expense

  4. Harshit · 19 Aug 2024

    But wouldn't direct wages be a part of direct expenses??

  5. Petchiyammal · 19 Aug 2024

    Wages comes under Direct wages, so it is not included in Direct Expense

Free app · 5 lakh+ learners

Ask your doubt in the Studycaller app

Read full notes, ask doubts, follow toppers and track your study hours — free on Android and iPhone.