Which one of the following is NOT an effective approach to cost-cutting that will aid company efforts to achieve a competitive advantage based on lower overall costs per pair sold than rival companies?

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19-11-2022
Business

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Which one of the following is NOT an effective approach to cost-cutting that will aid company efforts to achieve a competitive advantage based on lower overall costs per pair sold than rival companies?

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ranjithgowdavt ranjithgowdavt · Answer 1 · 2022-11-30T10:51:21+01:00

Pursuing actions in each production facility that result in low labour costs per unit produced ideally the company's labour costs per pair produced in those geographic regions where it has production facilities should be at or very close to the industry-low in the benchmarks on p. 6 of the FIR.

What are labour costs?

Labour costs represent the total expenditure incurred by employers for the employment of employees. They represent the cost of the salaries labour force, which is why they are sometimes referred to as salary costs.

Labour costs in addition to gross wages, include the social contributions payable by the employer social security, unemployment, pension, provident scheme, severance pay whether compulsory, conventional or optional, but net of exemptions, in particular reductions in social security contributions.

Learn more about labour, here:

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