Manufacturing wages
Manufacturing wage is in operational accounting the term for wages of workers who work directly with the production of a product involved (production-related personnel).
General
In addition to auxiliary wages and material costs, manufacturing wages form part of manufacturing costs . Manufacturing wages include the wages of all workers who either manually or with the help of machines are directly involved in the creation of a product. Therefore, their direct allocation is to a certain payers possible so that manufacturing wages as part of the production costs of the production costs are. The further away the staff is from the production process , the clearer the overhead character of the staff costs becomes . It starts with the auxiliary wages and ends with the remuneration of the executive board .
species
The production wage can be either time wages , piecework wages or premium wages . If the production wage is paid as a performance-proportional piecework or premium wage, it belongs to the variable (proportional) costs, and as a time wage to the fixed costs . Sometimes it is argued that manufacturing wages as time wages are paid on the basis of a unit of time and not a unit of product and therefore belong to the overhead costs. The most important production wage is the piecework wage, the best known is the production wage on the assembly line . In the production lines existing in manufacturing companies , manufacturing wages are mainly incurred.
meaning
Manufacturing wages are of great importance in industrial companies because of their close relationship with performance . The manufacturing wage is often used as a reference for the determination of production overheads based on that only by means of a distribution key can be allocated to the cost objects. According to Section 275 (2) HGB, the production wages in the profit and loss account ( total cost method ) are part of the sub-item “wages and salaries” within personnel expenses.