Question

Difference between material control and labour contact

Answer 1

Answer:

Materials control

Raw materials include all tangible items that go into the manufacturing of the finished product, including individual parts that work together to complete the product, the adhesive that holds those parts together and the boxes in which the products are shipped. Material costs and are identified as budgetary line items. Direct materials are items that are easily tracked as part of a final product. For example, a tiny motor that drives the fan in a computer is considered a raw material as it is only part of the total product, which is the built computer. The fan is also a product, for whatever company manufactured it.

Direct Labor

Direct labor describes anyone who is directly involved with the manufacturing of a product. Assembly workers who put the products together, quality control engineers who test the products to be sure they are operational, engineers who design the product and draw up the plans for manufacturing, and warehouse workers that package and ship the products are all direct laborers.

Indirect Labor

Any employee whose job is not directly involved with the development, manufacturing or shipment of the product is an indirect laborer. Company support staff such as human resources employees, administrative assistants and company security officers fall under the umbrella of indirect labor.

Adjusting

Labor expense is more adjustable than materials expense; an order for 10,000 products will require the same amount of glue and individual parts regardless of how long it takes to assemble them. Labor costs, by contrast, can be adjusted by designing more efficient assembly methods, having employees work or not work overtime and deciding how much quality control you are willing to pay for. Because labor costs are more flexible than material costs, when budget cuts become necessary labor is often targeted first.