Answer Posted / h.r. sreepada bhagi

Employer's Contribution to EPF or ESI can be grouped under
Employee Related Expenditure in the Chart of Accounts and
Profit & Loss A/c.
For the purpose of Costing of Product or service,
Contribution in respect of the employees directly related to
Production (Manufacturing) shall be included to Direct
Wages, contribution related to Administration & other
supporting departments to Administration Overhead and
contribution related to Marketing & Sales personnel to
Selling & Distribution overhead.

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