Question

which cost includes salaries bonus insurance pension benefits and leave paid to the individual involved?​

Answer 1

The labour costs include the salaries, bonuses, insurance pension benefits paid leaves, and others. However, some components are fixed , while some are variable.

• Labour cost is the total of entire wages that is paid to the employees. It also includes the employee benefits and the payroll taxes which an employer pays.
• The labour costs are further classified as the direct and indirect labour cost and are dependent on the types of labour.