The Importance of Tracking Labor Hours

DEDHAM, Mass. - June 24, 2016 - PRLog -- Chief Financial Officer Michael Barbarita has written a new blog post about the critical need for owners of manufacturing businesses to track labor hours.  Michael writes that during his time as a part-time CFO performing CFO services, he learned that the most important metrics involve direct labor hours.  Those metrics include:

·Sales per hour-Tracking this metric allows the business owner to find out if his/her pricing has integrity and how efficient his/her laborers are

·Overhead per hour-Tracking this metric allows the business owner to find out what their overhead cost is as well as applying it to the selling price to make sure that the overhead cost is covered

·Material cost per hour-Tracking this metric allows the business owner to find out if he/she is insufficiently consuming materials or is not buying effectively

Using these metrics will aid the business owner in evaluating the overall productively and performance of his/her business.

The entire blog post can be found at http://cfo-chief-financial-officer.blogspot.com/2012/04/cfo-services-importance-of-tracking.html.