Labour and Material Costing

Labour and material costing refers to the process of calculating the expenses associated with producing goods or services. Labor costs include wages, benefits, and other expenses related to employees who create the product. Material costs encompass the expenses for raw materials or components that go into the production. By analyzing these costs, businesses can determine the overall cost of production, set pricing strategies, and assess profitability. Understanding these costs is crucial for effective budgeting and financial planning, helping companies manage resources efficiently and remain competitive in their industry.