BUDGETING PROCESS -- DIRECT LABOUR BUDGET

Image by Tobias Higbie via Flickr

Another important factor of production is "Labour". In our last Article-cum-lecture we learnt to prepare Raw Material Budget, now it's time to think and budget the labour cost needed for the budgeted production. Direct Labour budget depends upon wage rates, amounts and skill levels of employees to be hired etc. It may also depends upon employees benefits such as employer contribution to social security, insurance and pensions.

As usual, let's go to our demo of the Budgeting Process for this important factor of productiion i.e. Direct Labour: