Question

Techniques for controlling the cost of labor in services include accurate scheduling of labor hours to assure quick response to customer demand, on-call labor for unexpected demand, flexibility of labor skills for reallocation of available labor, and flexibility in rate of output or hours of work to meet changing demand. Select one:

A. True
B. False

Answer 1

Answer:

A) True

Explanation:

The most common way to control the cost of labor in services is to reduce overtime costs since overtime work is paid at a much higher rate (1.5 times normal wage per hour).

You can reduce overtime work by having a flexible labor force that can deal with changing customer demand.