Recent Articles

Mix of Labor

This concept addresses having the correct ratio of skill, semi-skilled and unskilled labor in your business operation. This is a critical piece in controlling labor costs for any small business.

Operate Within Your Range of Production

02/13/2013

One of the basic business concepts is range of production.  It means maximizing the capacity (range) of the assets in your operation.  When the business operation goes beyond the maximum production range, costs associated with the marginal [...]

The Different Forms of Compensation

01/21/2013

There are two forms of compensation provided to employees; direct and indirect.  Direct forms of compensation have a multitude of types or methods, from salaries to bonuses.  Indirect compensation is primarily the various types of benefits and [...]

The True Cost of Labor

01/01/2013

I laugh at the definition of labor costs because in my opinion the so called experts only have it half right.  Labor costs are more than just gross wages and benefits.  It should include the costs of insurance, employer taxation, human resources [...]

A Story About Great Production

12/12/2012

When I started out in accounting I had a job as a controller at a restoration contractor.  They would provide emergency mitigation for water damage jobs, mostly residential damage.  Every now and then we would get a call for a larger commercial [...]

Controlling Labor Costs in a Restaurant

12/09/2012

There are two costs that stand out in the restaurant industry.  Food and labor comprise more than 45% of the typical expenses of the restaurant.  No other expense comes close to these two costs.  This article is dedicated to controlling the labor [...]