Aliveinamerica

The Return of the $70 per Hour Meme

Obviously, you like GM has not investigated Activities Based Costing (ABC) Labor, especially here is a valuable cost driver for making management decisions, especially with a per worker hour cost of $70/hour. All labor costs, direct labor and accumulated labor (pensions) should be included in this calculation. Move into modern cost analysis which is much more accurate than standard costing methods.


On Nov 19 11:48 AM CM in MA wrote:

> We, that is the collective minds in the U.S., seem to have forgotten
> that labor is a cost. This is not surprising since we've now spent
> decades convincing ourselves otherwise. That said, dividing costs
> by hours worked provides no information not least because the number
> calculated doesn't measure anything in terms of output. Does anyone
> remember when we used to think in terms of production in this country?
> Dividing costs by anything other than units of production makes no
> sense and provides no actionable information for management.