Businesses evaluate their product costs on a regular basis. Understanding these costs helps the company to make pricing decisions and estimate its potential profits. Each year the company creates a ...

Labor variance occurs when the projected or budgeted amount of cost of labor is either lower or higher than estimated. Labor variances happen for a variety of reasons, explains AccountingTools.com.

Direct labor rates are the labor costs directly resulting in the production of a product or delivery of a service. These costs include wages, payroll taxes, insurance, retirement matches, and other ...