Therefore, labor cost variance> 0. The number TFH paid to employees is beyond the budget. Its cause may be due to: over time, increasing labor costs rose by either periodically or under contract, resulting in a disadvantage because of the price difference. For example, long-term contracts will often have so-called escalation clauses, designed to automatically increase labor costs scheduled periodically. Also, while Intel increases the volume of the product, they can periodically increase the hourly rate of their labor contract. Furthermore, the staff can suddenly have to pay overtime rates, can also cause labor arbitrage is not conducive to management. (Writing by Jeff Clements, communication needs, nd)
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