DIRECT LABOR UTILIZATION RATE Definition

Bookmark and Share

DIRECT LABOR UTILIZATION RATE is total payroll charged directly to job numbers in the period divided by the total payroll (direct and indirect) expended in the period. Since payroll is by far the single largest cost to operate a firm, generally speaking, the higher the direct labor rate, the more efficiently economically managed is the firm.

Learn new Accounting Terms

MAT is Management, Administrative, and Technological.

OPERATING COST is the expense of maintaining property (e.g., paying property taxes and utilities and insurance) it does not include depreciation or the cost of financing or income taxes. Also known as OPERATING EXPENSE.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.