Employee cost measurement under cost accounting standards defines inclusion, exclusion, assignment, and disclosure rules for cost statements. Employee cost under Cost Accounting Standard 7 is measured with gross pay, allowances and employer-funded benefits, while excluding imputed costs, material abnormal costs, penalties, and specified prior-period items. Bonus, ex gratia, managerial remuneration, separation costs, idle time, subsidies and recoveries are treated according to defined measurement rules. Employee costs are assigned directly where traceable to a cost object, otherwise by suitable allocation methods, and are presented separately as direct costs or within overheads with prescribed disclosures.