Discover what labor costs encompass, their categories—direct and indirect—and why they matter in pricing strategies to maintain profitability.

The cost of labor is the amount of employee wages and benefits, plus payroll taxes paid by an employer. The cost of labor can be broken into direct and indirect costs. Direct labor costs are those ...

Direct labor rates include wages, taxes, and benefits directly tied to producing goods or services. Exclude indirect labor like supervisors from direct labor rate calculations. Monitoring direct labor ...