Question

State whether the statement is True or False:
‘Wage abstract is not prepared in case of batch costing.’

Hint:

Wage abstracts help track labour cost for batches, jobs, or contracts.

Answer 1

A wage abstract is a statement prepared to record the details of labour time spent on different jobs, batches, or processes.
It helps allocate direct labour cost correctly to each cost unit or cost center.
In batch costing, it is very important to prepare a wage abstract to know the total direct labour cost incurred for each batch.
Without this, accurate costing of each batch is not possible.
Therefore, the statement is False — a wage abstract is indeed prepared in batch costing.