Objective of Labour Cost Control

Objective of Labour Cost Control:

The purpose of labour cost control is to provide a comparison of an actual cost with a standard cost in order to measure productivity and identify opportunities for improvement. The design of the labour cost-control system will depend on the characteristics of the job. Most jobs at a mine will be in one of two categories of jobs; either the production output will vary according to the labour input or the production will remain constant irrespective of minor variations in the labour input.

Here is what you will be able to do when you complete each step.

1. Discuss costs associated with labour.
2. Discuss the importance of labour cost controls.
3. Discuss optimum labour cost parameters.
4. Investigate factors affecting job performance.
5. Investigate methods for reducing labour costs.

Performance Evaluation

To show that you have mastered this task, here is what you will be asked to do:

Complete module assessment.

OBJECTIVE 1

When you complete this objective you will be able to…

Discuss costs associated with labour costs.

Learning Activities

Complete each of the Activities listed below :

List costs associated with staffing.

Learning Material

Labour costs are any costs associated with staffing. These include the host or hostess that greets the customer, the servers, cooks, bus people, dish and pot washers, the chef and sous chef, the dining room manager and the owner. Labour costs include wages and salaries, Employment insurance contributions, WCB contributions and any benefits afforded to employees such as supplied uniforms and cleaning, medical or dental plans and staff meals which are a taxable benefit according to Revenue Canada.

OBJECTIVE 2

When you complete this objective you will be able to…

Discuss the importance of labour cost controls.

Learning Activity

Complete each of the Activities listed below :

Discuss each of the points identified in the learning material below.

Learning Material

  • Food and beverage service is highly labour intensive.
  • High reliance on entry level positions.
  • Many staff are transitory, short timers.
    • only working until . . .
  • Labour is one of the higher costs in the operation

OBJECTIVE 3

When you complete this objective you will be able to…

Discuss optimum labour cost parameters.

Labour Cost Control