Terms / FAQ
- Burdened Labor Costing
- The sum of direct labor costs, vehicle costs (if applicable), associated indirect labor costs and adjusted percentage of overhead costs.
- Direct (Labor) Employees
- Employees personally involved in performing a revenue generating service.
- Indirect (Labor) Employees
- Employees that do not directly generate revenue, i.e. office employees, managers, owner and shop employees.
- Different segments within your business that bring in revenue and incur cost of goods sold.
- Overhead Costs
- Expenses that must be paid on a continuous basis to keep the business going.
- Billed Hours
- Hours each day that revenue is generated by direct labor employees.
- Labor Efficiencies
- Time study showing direct labor costs per day and if that direct labor is covering those costs.
- Flat Rate
- Providing one up-front price for a service, this price includes average costs for time and material to complete that specific service.
- Flat Rate Developer
- Create a flat rate program utilizing your Burdened Labor Costing, parts and materials, and times studies.
Why would I clone a direct employee? This feature allows you to test out different cost changing scenarios for a current employee (giving a raise, changing their vehicle) providing you with an updated Burdened Labor Cost.
When do I change my department's direct labor count? Only change this when you are adding or deleting an employee to the department.