Question

How are standard fixed for material cost labour cost and overheads?

Answer 1

Answer:

There is a large relation and interconnection between the material cost and the labour cost in as far as determining the price index of the work in any given environment is concerned.

Explanation:

• Normally the total material cost for instance in a building is the is the determinant of the total cost of the labour.

• The total cost of the construction of the house for instance gives us the provision to charge on the labour cost as the constructors.

• The total amount is normally determinant and the total labour cost is normally the thirty percent of the total cost.

• The total cost of the construction is normally directly proportional to the labour cost.