LABOUR COSTS Meaning and
Definition
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Labour costs refer to the total expenses incurred by a business or organization in relation to compensating its workforce for their services rendered within a given period. These costs encompass all forms of remuneration provided to employees, including wages, salaries, bonuses, commissions, and benefits such as pensions and healthcare.
Typically, labour costs are calculated by adding the compensation paid to employees, which may vary depending on factors such as the number of hours worked, level of skill or experience, and any additional remuneration based on performance or seniority. Labour costs are a significant component of a company's overall expenses, as they directly impact profitability and financial performance.
These costs can be further categorized into direct labour costs and indirect labour costs. Direct labour costs refer to the compensation directly associated with the production of goods or services, while indirect labour costs encompass the wages and benefits of employees involved in supporting roles, such as administration, supervision, or maintenance.
Understanding and managing labour costs is crucial for businesses to maintain their financial stability and competitiveness. It involves monitoring and controlling factors such as labour productivity, workforce planning, employee turnover, and compensation structures. An effective management approach to labour costs is vital to ensure a balanced and productive workforce while optimizing financial resources and sustaining profitability.
Common Misspellings for LABOUR COSTS
- kabour costs
- pabour costs
- oabour costs
- lzbour costs
- lsbour costs
- lwbour costs
- lqbour costs
- lavour costs
- lanour costs
- lahour costs
- lagour costs
- labiur costs
- labkur costs
- lablur costs
- labpur costs
- lab0ur costs
- lab9ur costs
- laboyr costs
- labohr costs
- labojr costs
Etymology of LABOUR COSTS
The word "labour costs" consists of two parts: "labour" and "costs".
1. Labour:
The term "labour" comes from the Middle English word "labur" which was derived from the Old French word "labour", meaning effort or exertion. It can be traced back to the Latin word "labor", which has the same meaning. Thus, the word "labour" refers to the physical or mental exertion needed to perform a task, job, or work.
2. Costs:
The word "costs" comes from the Old French word "coût", which was derived from the Latin word "causa", meaning cause or reason. In this context, "costs" refer to the amount of money or resources required to produce or obtain something.
