Question

'Employee maintenance' goes under which cost?

• A. Indirect labour
• B. Direct labour
• C. Direct material
• D. Indirect material
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Hint:

Remember: Any cost paid directly for hands-on production is Direct (e.g., ingredients, line cooks' hourly wages). Any cost supporting that production or looking after the producers is Indirect (e.g., dishwashing liquid, supervisor salaries, staff meals/uniform maintenance).

Answer 1

The Correct Option is A

Step 1: Classification of Costs in Hospitality and Catering:
To manage profitability in a professional food establishment, expenditures are classified into materials, labor, and overheads, each further split into direct and indirect streams.

Step 2: Defining Labor Cost Categories:

• Direct Labour Cost: Wages, salaries, and direct incentives paid to the personnel directly involved in production or service (e.g., chefs, line cooks, kitchen helpers, and waitstaff).
• Indirect Labour Cost: Expenses incurred on workers that do not directly prepare or serve food, or costs related to the welfare, support, and maintenance of the workforce.

Step 3: Analyzing 'Employee Maintenance':
“Employee Maintenance” (often listed as worker maintenance, welfare, training, uniform allowances, staff meals, and medical check-ups) represents the operational overheads required to sustain, clean, feed, and manage the workers. Since these expenditures do not directly go into the raw physical assembly of a single plate of food, they are classified under Indirect Labour Cost.