Cost Of Labor

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Dictionary Says

Definition of 'Cost Of Labor'

The sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer. The cost of labor is broken into direct and indirect costs. Direct costs include wages for the employees physically making a product, like workers on an assembly line. Indirect costs are associated with support labor, such as employees that maintain factory equipment but don't operate the machines themselves.
Investopedia Says

Investopedia explains 'Cost Of Labor'

When manufacturers set the price of a good they take the cost of labor into account. This is because they need to charge more than that good's total cost of production. If demand for a good drops or the price consumers are willing to pay for the good falls, companies must adjust their the cost of labor to remain profitable. They can reduce the number of employees, cut back on production, require higher levels of productivity, reduce indirect labor costs or reduce other factors in the cost of production.
Search results for

'Cost Of Labor'

  • Cost-Push Inflation Versus Demand-Pull Inflation

    http://www.investopedia.com/articles/05/012005.asp
    ... If the cost of labor, a factor of production, increases, the company has to allocate
    more resources to pay for the creation of its goods or services. ...

  • What Is International Trade?

    http://www.investopedia.com/articles/03/112503.asp
    ... Political change in Asia, for example, could result in an increase in the cost of
    labor, thereby increasing the manufacturing costs for an American sneaker ...

  • Economic Indicators: Employee Cost Index (ECI) | Investopedia

    http://www.investopedia.com/university/releases/eci.asp
    ... Released By: Bureau of Labor and Statistics (BLS). Latest Release: http://stats.
    bls.gov/news.release/eci.nr0.htm. Background The Employment Cost Index (ECI) is ...

  • CFA Level 1 Study Guide - Macroeconomics - Economic Rent and ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/economic-rent.asp
    ... Supply of Financial and Physical Capital; 4.7 Economic Rent and Opportunity Cost;
    4.8 Monitoring Cycles, Jobs, and Price Level; 4.9 Key Labor Market Indicators; ...

  • 5 Car Repairs You Should Do Yourself - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0810/5-Car-Repairs-You-Should-Do-Yourself.aspx
    ... The Bottom Line When you take your car to a mechanic, you will usually find
    that the bulk of the cost is labor, and a fraction is parts. ...

  • Do Cheap Imported Goods Cost Americans Jobs?

    http://www.investopedia.com/articles/economics/09/free-market-dumping.asp
    ... products are unfairly priced - that is, the producing country is selling them below
    cost. ... China can do this because its labor costs are a fraction of those of ...

  • The True Cost Of Owning A Car

    http://www.investopedia.com/articles/pf/08/cost-car-ownership.asp
    ... Other, $879, $1,489, $2,188, $2,968, $4,248. Figure 1: 2006 household cost of owning
    a vehicle per quintiles of income. Source: Bureau of Labor Statistics. ...

  • CFA Level 1 Study Guide - Macroeconomics - Key Labor Market ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/labor-market-indicators.asp
    ... Supply of Financial and Physical Capital; 4.7 Economic Rent and Opportunity Cost;
    4.8 Monitoring Cycles, Jobs, and Price Level; 4.9 Key Labor Market Indicators; ...

  • 3 Ways Immigration Helps And Hurts The Economy - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0809/3-Ways-Immigration-Helps-And-Hurts-The-Economy.aspx
    ... Another way to think of it is to consider that goods produced using lower cost labor
    makes them less costly, and frees up resources to produce more of ...

  • What is the Ricardian vice?

    http://www.investopedia.com/ask/answers/08/ricardian-vice.asp
    ... He also spent time seeking an ironclad measure of value, trying to link it to the
    cost of labor while calculating out any benefits of machine labor. ...

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