ECR Exam help!

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Pinchy
Pinchy Registered Posts: 38 Regular contributor ⭐
in AAT Level 3 (Level 6 in Scotland)
Is it just me or did anyone else think that Pilots Salaries were a direct cost and therefore not an overhead? I really deliberated and in the end did not include them in the table as we had a similar question on our simulation - our tutor told us not to include it as it was a trick question.
Only Indirect labour is included in Overheads and we already had that so Pilot wages must be a Direct cost, so not an Overhead???
:001_unsure:

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  • twinmeister
    twinmeister Registered Posts: 122 Dedicated contributor 🦉
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    Derren Brown

    Yes you're right - now you mention it pilot's salaries could indeed be classed as direct costs. However, are they treated as 'production overheads' because they can't be attributed directly to a the individual cost units of either scheduled flight mile or a chartered flight mile?
  • Pinchy
    Pinchy Registered Posts: 38 Regular contributor ⭐
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    I would have thought that if that was the case they would be an Indirect Labour cost wouldn't they?
  • any2002uk
    any2002uk Registered Posts: 88 Regular contributor ⭐
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    mine just allocation them to 2 profit centres. as well for indirect cost to allocation

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