Labour cost percentage would be calculated as follows: $2250 x 100 = 26.3% $8550 1 The labour cost percentage for these figures is thus 26.3%. In the above example, if management had set a labour cost percentage target of 30%, you would be happy because you have come in under budget. If the target was 25%, then you would have come in slightly over budget. Where you come in over budget, some establishments may allow you to carry this forward to next time, and retrieve the situation in the next period.
Labour cost percentage would be calculated as follows: $2250 x 100 = 26.3% $8550 1 The labour cost percentage for these figures is thus 26.3%. In the above example, if management had set a labour cost percentage target of 30%, you would be happy because you have come in under budget. If the target was 25%, then you would have come in slightly over budget. Where you come in over budget, some establishments may allow you to carry this forward to next time, and retrieve the situation in the next period.
TM_organise_functions_Final.docx