Creating a sales budget helps you determine your direct labor needs. The sales budget estimates your future sales based on the past sales. This information is used to develop your production budget.

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 ...

Discover what labor costs encompass, their categories—direct and indirect—and why they matter in pricing strategies to maintain profitability.

Direct labor rates include wages, taxes, and benefits directly tied to producing goods or services. Exclude indirect labor like supervisors from direct labor rate calculations. Monitoring direct labor ...

Every business, whether small or large, needs a way to track its expenses, revenue and profits. "Budgets are really important for both internal and external (reasons)," says Joseph Fahey, director of ...