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Understanding Activity Based Costing

Activities consume resources and resources have a cost. This is the foundation of activity based costing.An activity is work that gets done in an organization. It is a combination of men, materials,machines, technology and process that leads to a desired result.These processes require resources. Resource could be people- so direct labour could be involved. Labour cost has a direct relationship with benefits. So benefits is also considered as a part of the direct cost.

Why [Read more →]

Warehouse Operations - How To Increase Productivity and Reduce Labor Costs

If you are looking to improve your warehouse operations, then you will want to read this article. Specifically, I will discuss different ways you can improve various operations in your warehouse, to enjoy overall productivity and cut back on labor costs.

You should view how you train your employees as one of the most important warehouse operations in your business. The relative cost of training employees, compared to the increase in productivity usually associated to th [Read more →]

Debunking The Cost Of Quality And Productivity

I hear an awful about the cost of quality and how it impacts production in such negative terms. I thought maybe it’s time to debunk the myth that investing in quality negatively impacts production.

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the cost of quality is not defined as the expenses in creating, deploying and supporting a quality system as most think. It is rather the cost of not adopting a program. How much does it cost you to loose a contract for low quality? What does that do [Read more →]