Conventional accounting direct labor

The use of allocations has been the principal reason that a conventional accounting statement was wanting. Accounting systems use allocations as shortcuts to ensure that the costs of production are fully absorbed. Most of the allocated costs fall into the category of indirect cost and become part of the cost of goods sold, as shown in Table 27.1. Direct costs are those that, in a manufacturing company, are part of the bill of material and are based on standards for labor and material. These direct costs are... 

Activity 6 is labor intensive, and it has the largest share of direct labor at Old Line. Because direct labor is the base for allocation under conventional accounting. Activity 6 appears to be the costliest (28 percent) using a conventional accounting approach. By contrast, the ABC approach shows that Activity 5 actually has the highest cost (23 percent). 

In Russia the system of occupational risk assessment is devised. The system in based on Federal laws 52-FL (1999) on sanitary and epidemiologic well-being of the population, 181-FL (1999) on labor protection, and 125-FL (1998) on obligatory social insurance of occupational accidents and diseases. It also accounts for WHO and ILO concepts, EU directives, and ILO conventions ratified by Russia (e.g. 148 on working environment). The state standard GOST R 12.0.006-2002 on OHS management in organization based on OHSAS 18001-99 and ILO-OSH 2001 covers both workplace certification and risk assessment. 

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See also in sourсe #XX -- [ ]

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