![]() This approach breaks down your total labor cost per unit of output. Let’s walk through the most widely used methods: Methods Knowing how to calculate labor costs is an essential skill every business owner should have in their tool belt. This, in turn, can help you pinpoint where you could cut back or optimize without letting go of your valuable team members. Understanding these components is key to getting a full picture of your labor costs. Rent for office space, utilities, equipment, supplies – all these overhead costs factor into your total labor costs. ![]()
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