Unit labor cost refers to the amount of personnel expenses to make one item of your product. Knowing your total cost per unit can help you plan your pricing, see how different sales levels affect your ...

Labor can account for the largest expense of manufacturing products. You should always keep track of your labor cost per unit to make sure that wages are not growing faster than profits. To do this, ...

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

One of our readers recently sent in the following question regarding per-order labor costs and how to calculate them: “Do the labor costs relate only to pickers and packers of the orders? What about ...

The high-low method is used in cost accounting to estimate fixed and variable costs based on a business's highest and lowest levels of activity. By focusing on these extremes, the high-low method ...

Last month, we discussed how you could get better control of the equipment you own and rent. This month, we’re going a step further by offering up a couple of ways to collect and analyze the data.

A great vintage takes time to mature. But when it does, it is marvelous. The same is true for a great idea. It takes time to go from the original concept to a practical valuable implementation. We all ...

To run a company successfully, you need to know everything about your business, including its financials. One of the most critical financial metrics to grasp is the contribution margin, which can help ...

Nick has seven years of experience in the home improvement industry. He started his career marketing for dozens of flooring providers and related home services across North America. Today, he is a ...

When Software as a Service (SaaS) products scale, it might be tempting to think that traditional unit economics rules no longer apply. Expectations of economies of scale further fuel this notion. Yet, ...