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

INTI (INTIS) is a currency of Peru.

VARIABLE COSTS are those costs associated with production that changes directly with the amount of production, e.g.,the direct material or labor required to complete the build or manufacturing of a product.

Suggest a Term

Enter Search Term

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