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  • Leigh Ann S. Ramos

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    Patrick Lance
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    The document discusses labor costs, which include direct and indirect costs. Direct labor costs refer to payroll costs for workers directly involved in production. Indirect labor costs are payroll costs for workers indirectly involved in production. Labor cost is calculated as the total sales multiplied by the labor percentage, divided by the average hourly rate of labor. Labor costs include basic salaries, overtime pay, and bonuses for employees.

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    The document discusses labor costs, which include direct and indirect costs. Direct labor costs refer to payroll costs for workers directly involved in production. Indirect labor costs are payroll costs for workers indirectly involved in production. Labor cost is calculated as the total sales multiplied by the labor percentage, divided by the average hourly rate of labor. Labor costs include basic salaries, overtime pay, and bonuses for employees.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    19 views28 pages

    Leigh Ann S. Ramos

    Uploaded by

    Patrick Lance
    The document discusses labor costs, which include direct and indirect costs. Direct labor costs refer to payroll costs for workers directly involved in production. Indirect labor costs are payroll costs for workers indirectly involved in production. Labor cost is calculated as the total sales multiplied by the labor percentage, divided by the average hourly rate of labor. Labor costs include basic salaries, overtime pay, and bonuses for employees.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 28

    Population

    Consumers’ Tastes and Preference


    Complimentary Goods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good
    Inferior Good
    Normal
    Consumers’ Good
    Income
    Price of the Good Itself
    Determinants
    Quantity of Demand
    Demand
    Demand

    GROUP 5
    Ramos
    Aquino
    FOR
    LABOR

    Alonzo
    ACCOUNTING

    Dizon
    Maniego
    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good
    Inferior Good
    Normal
    Consumers’ Good
    Income
    Price of the Good Itself
    Determinants of Demand
    Quantity Demand

    LABOR COSTS
    PRODUCTIVITY AND

    CONTROL
    LABOR COST
    ACCOUNTING AND
    ORGANIZATION FOR
    PLANS
    INCENTIVE WAGE

    COSTS
    ACCOUNTING FOR
    PERSONNEL RELATED
    THEORY
    LEARNING CURVE
    TIME STANDARDS AND

    Leigh Ann S. Ramos


    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good
    Inferior Good
    Normal
    Consumers’ Good
    Income
    Price of the Good Itself
    Determinants of Demand
    Quantity Demand

    Leigh Ann S. Ramos


    LABOR COSTS
    PRODUCTIVITY AND

    Leigh Ann S. Ramos


    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good
    Inferior Good
    Normal
    Consumers’ Good
    Income
    Price of the Good Itself
    Determinants of Demand
    Quantity Demand
    LABOR
    • Human contribution to production

    Leigh Ann S. Ramos

    LABOR
    Consumers’
    Complimentary Preference
    Tastes andGoods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good
    Inferior Good
    Normal
    Consumers’ Good
    Income
    Price of the Good Itself
    Determinants of Demand

    labor
    LABOR COST
    in the production represents factory
    Price paid to the employees who engage

    LABOR COST
    Demand
    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good
    Inferior Good
    Normal
    Consumers’ Good
    Income
    Price of the Good Itself

    the production.
    DIRECT LABOR

    paid to workers who


    are directly engaged in
     Payroll costs that are  Payroll
    LABOR

    production.
    INDIRECT

    are indirectly
    engaged in the
    TWO TYPES OF LABOR COSTS

    paid to workers who


    costs that are

    DIRECT VS. INDIRECT


    Quantity Demand
    Demand
    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good
    Inferior Good
    Normal
    Consumers’ Good
    Income
    Price of the Good Itself

    DIRECT VS. INDIRECT


    Quantity Demand
    Demand
    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good
    Inferior Good
    Normal
    Consumers’ Good
    Income
    Price of the Good Itself

    DIRECT VS. INDIRECT


    Quantity Demand
    Demand
    Consumers’ Expectation of Future Prices
    LABOR COST
    Consumers’ Tastes and Preference

    LABOR COST = (total sales x labor % ) / average hourly rate of labor


    Commodities
    Complimentary Goods

    Itself
    Income
    Goods

    Quantity Demand
    Illustration
    Good
    Good
    Luxury Good
    Price of the Good
    Population

    Demand
    Substitute

    Consumers’
    Normal
    Inferior

    Lei Bhor Co. has total sales of 1,000,000, 15% Labor and 10 average
    Related

    hourly rate of labor. How much is the labost cost?


    of

    Solution:
    Price

    = (1,000,000 x 15% ) / 10
    = 150,000 / 10
    = 15,000
    INCLUSIONS TO
    LABOR COSTS
    Consumers’ Expectation of Future Prices
    Consumers’ Tastes and Preference
    Commodities

    of Demand
    Inclusions to Labor costs
    Complimentary Goods

    Basic Salaries of Employees


    Income
    Goods

    Quantity Demand
    Consumers’Good
    Good
    Luxury Good
    Population

    Overtime Pay

    Demand
    Substitute

    Determinants
    WAGE – payment made on
    Normal
    Inferior
    Related

    Bonuses for exemplary an hourly, daily, or


    piecework basis.
    performance
    of

    SALARY- fixed payments


    Price

    SSS, PhilHealth, Pag-ibig made regularly for


    managerial or clerical
    Medical benefits and the like services
    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good
    Inferior
    Normal Good
    Good

    Y
    PRODUCTIVIT

    LABOR PRODUCTIVITY
    Price of the Good Itself
    Determinants of Demand
    Quantity Demand
    Demand
    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good
    Inferior
    Normal Good
    Good

    • It
    performance.
    LABOR
    can PRODUCTIVITY

    resources are converted into products or services.


    be defined as a measure for production

    • It can be described as the efficiency with which

    LABOR
    Price of PRODUCTIVITY
    the Good Itself
    Determinants of Demand
    Quantity Demand
    Demand
    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good
    Inferior
    Normal Good
    Good

    utilizing the resources properly.


    produces more with a given amount of inputs, it means it is
    factory is operating. If a firm has higher productivity, it
    Productivity is a good indicator of the efficiency with which a

    PRODUCTIVITY
    Price of the Good Itself
    Determinants of Demand
    Quantity Demand
    Demand
    How to measure productivity?
    • Output refers to the total production in
    terms of units or in terms of revenues.
    Consumers’ Expectation of Future Prices
    Consumers’ Tastes and Preference

    • Input refers to all the factors of


    Commodities

    production used like capital, labour,

    of Demand
    Complimentary Goods

    Price of the Good Itself


    equipment, etc.
    Goods

    Quantity Demand
    PRODUCTIVITY
    Good
    Normal Good
    Luxury Good
    Population

    Rate Guide

    Demand
    Substitute

    • 90% = working slower than normal

    Determinants
    Inferior
    Related

    • 110% = working faster than normal


    • 100% = normal
    Price of
    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good
    Inferior
    Normal Good
    Good

    PRODUCTIVITY?
    WHY DO WE MEASURE

    TO PROVIDE A CONCISE AND ACCURATE INDEX FOR


    COMPARING ACTUAL RESULTS OF THE PERFORMANCE

    PricePRODUCTIVITY
    of the Good Itself
    Determinants of Demand
    Quantity Demand
    Demand
    ILLUSTRATION 1
    4,000 hours are standard for a department, but 4,400 hours are used. What is the productivity
    Consumers’ Expectation of Future Prices
    Consumers’ Tastes and Preference

    rate of the department?


    Commodities

    of Demand
    Complimentary Goods

    Price of the Good Itself


    Productivity rate = Standard Time /Actual Time x 100
    Goods

    Quantity Demand
    = 4,000/ 4,400 x 100

    ILLUSTRATIONS
    Good
    Normal Good
    Luxury Good

    = 90.9% * The department is working slower than normal. Thus, there is an unfavorable ratio.
    Population

    Demand
    Substitute

    Determinants
    Inferior
    Related

    ILLUSTRATION 2
    A company generated 80,000 worth of goods in 1500 hours. Calculate the Labor productivity.
    Price of

    Productivity = Output/Input
    = 80,000/ 1500
    = 53
    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good
    Inferior Good

    PRODUCTIVITY
    FACTORS AFFECTING

    FACTORS
    Consumers’ Income
    Price of the Good Itself
    Determinants of Demand
    Quantity Demand
    Demand
    FACTORS AFFECTING
    PRODUCTIVITY
    HUMAN FACTORS
    Consumers’ Expectation of Future Prices
    Consumers’ Tastes and Preference
    Commodities

    of Demand
    Complimentary Goods

    Price of the Good Itself


    • Ability to Work - Productivity of an organization depends upon

    Consumers’ Income
    Goods

    Quantity Demand
    Good

    the competence of its people—both workers and managers.


    Luxury Good
    Population

    FACTORS

    Demand
    Ability to work is governed by education, training and
    Substitute

    Determinants
    Inferior
    Related

    experience.

    • Willingness to work – Motivation and morale of people is the


    Price of

    second important group of human factors that determine


    productivity.
    FACTORS AFFECTING
    PRODUCTIVITY
    TECHNOLOGICAL FACTORS
    Consumers’ Expectation of Future Prices
    Consumers’ Tastes and Preference
    Commodities

    of Demand
    Size and capacity of plant
    Complimentary Goods

    Price of the Good Itself


    Consumers’ Income
    •
    Goods

    Plant layout and location

    Quantity Demand
    Good
    Luxury Good

    • Product design and standardization


    Population

    FACTORS

    Demand
    •
    Substitute

    Timely supply of materials and fuel

    Determinants
    Inferior
    Related

    • Repairs and maintenance


    • Inspection and quality control
    of

    • Machinery and equipment used


    Price

    • Research and development


    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good
    Inferior Good

    ECONOMIC FACTORS
    PRODUCTIVITY

    important factors influencing productivity.


    FACTORS AFFECTING

    transport and communication systems, etc. are


    • Size of the market, banking and credit facilities,

    FACTORS
    Consumers’ Income
    Price of the Good Itself
    Determinants of Demand
    Quantity Demand
    Demand
    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good

    PRODUCTIVITY
    WAYS TO INCREASE

    WAYS TO INCREASE PRODUCTIVITY


    Normal Good
    Consumers’ Income
    Price of the Good Itself
    Determinants of Demand
    Quantity Demand
    Demand
    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good

    and equipment.

    planning and control.


    • Effective time management.
    PRODUCTIVITY
    WAYS TO INCREASE

    • Implementing a proper system of managerial


    • Adoption of up-to-date technology in machines

    WAYS TO INCREASE PRODUCTIVITY


    Normal Good
    Consumers’ Income
    Price of the Good Itself
    Determinants of Demand
    Quantity Demand
    Demand
    WAYS TO INCREASE
    PRODUCTIVITY
    • Empower employees by providing training and
    Consumers’ Expectation of Future Prices
    Consumers’ Tastes and Preference
    Commodities

    WAYS TO INCREASE PRODUCTIVITY

    of Demand
    Complimentary Goods

    Price of the Good Itself


    an environment conducive for personal as well

    Income
    Goods

    Quantity Demand
    Normal Good
    as organizational growth.
    Luxury Good
    Population

    Demand
    Substitute

    • Provide a flexible work schedule instead of rigid

    Consumers’
    Determinants
    Related

    working hours.
    of

    • Clear communication should be there between


    Price

    management and workers.


    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute
    Related Goods
    Commodities
    Consumers’ Expectation of Future Prices
    Luxury Good

    production.
    PRODUCTIVITY
    WAYS TO INCREASE

    • Maintenance of work facilities in factories.

    • Standardization and automation for mass

    WAYS TO INCREASE PRODUCTIVITY


    Normal Good
    Consumers’ Income
    Price of the Good Itself
    Determinants of Demand
    Quantity Demand
    Demand
    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute Goods
    Related Commodities

    PRODUCTIVITY
    ADVANTAGES OF HIGH

    OF HIGH
    ADVANTAGESLuxury PRODUCTIVITY
    Good
    Inferior
    Normal Good
    Consumers’GoodIncome
    Price of the Good Itself
    Determinants of Demand
    Quantity Demand
    Demand
    ADVANTAGES OF HIGH PRODUCTIVITY
    • It helps to reduce the cost of production
    Consumers’ Tastes and Preference

    PRODUCTIVITY
    Related Commodities

    of Demand
    Complimentary Goods

    Price of the Good Itself


    • Reduction in costs helps to improve the profits of a

    Income
    Goods

    Quantity Demand
    Consumers’Good
    Good Good
    business.
    Population

    Demand
    Price ofSubstitute

    OF HIGH

    Determinants
    Normal
    Inferior
    ADVANTAGESLuxury
    • The gains of higher productivity can be passed on to
    consumers in the form of lower prices.

    • There will be higher wages or salaries and better


    working conditions.
    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute Goods
    Related Commodities

    •
    country.

    in the country.
    ADVANTAGES OF HIGH PRODUCTIVITY

    • Higher productivity means better utilization of the


    Helps to improve the standard of living in the

    country’s resources, which helps to control inflation

    OF HIGH
    ADVANTAGESLuxury PRODUCTIVITY
    Good
    Inferior
    Normal Good
    Consumers’GoodIncome
    Price of the Good Itself
    Determinants of Demand
    Quantity Demand
    Demand
    Population
    Consumers’ Tastes and Preference
    Complimentary Goods
    Price ofSubstitute Goods
    Related Commodities

    Group 5
    Leigh Ann Ramos
    THANK YOU!

    OF HIGH
    ADVANTAGESLuxury PRODUCTIVITY
    Good
    Inferior
    Normal Good
    Consumers’GoodIncome
    Price of the Good Itself
    Determinants of Demand
    Quantity Demand
    Demand

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