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Direct Labor Costs Cost of Goods Sold 41120 3 {{{keywords}}} {{{description}}}
CO112
Direct Labor Costs
Direct Labor Costs measures the expense a company incurred to manufacture sellable products (Make Products). It includes the costs of salaries and wages, benefits, taxes, and insurance.
Calculation
| Direct Labor Costs | ||||
| = |
| |||
where
- Cost of Salaries and Wages = Total annual cost of wages paid to employees directly involved in the Make process
- Cost of Employee Benefits = Total annual cost of benefits paid to/for employees directly involved in the Make process
- Cost of Employee Insurance = Total annual cost of insurance paid for employees directly involved in the Make process
- Other Direct Labor Costs = Sum of total annual costs for Employer Taxes, Indirect Labor Cost, Production Automation Cost, Production Property, Plant & Equipment Cost and Production GRC, Inventory & Overhead Cost
- Total Revenue = Total annual revenue from sales of products and services
Unit of measure: Currency
Importance
A lower number of days indicate better control of the costs to make sellable products/services.
Notes
Community Importance Rating: Process(es)
| ID | Name | Level | x |
|---|---|---|---|
| P303 | Calculate Production Plan | 3 | P303 |
| M202 | Schedule Make Orders | 3 | M202 |
| M302 | Complete Order Engineering | 3 | M302 |
| M303 | Schedule Resources | 3 | M303 |
| M404 | Examine | 3 | M404 |
| M410 | Transfer | 3 | M410 |