Labor Costs\" Please respond to the following: Identify at least two factors tha
ID: 367632 • Letter: L
Question
Labor Costs" Please respond to the following: Identify at least two factors that VectorCal uses to determine its labor costs for the creation of the navigation system that it is marketing to the government. Specify key reasons why these two factors are important in determining the labor costs for VectorCal’s navigation systems. Support your response with one example of such importance. From the e-Activity, speculate on key areas where most companies fall short when determining their labor costs. Suggest two (2) methods that a company CEO should use in order to reduce price labor cost inconsistencies. Support your suggestion with two (2) real-world examples.
Explanation / Answer
In order to calculate the labor cost for a project, VectorCal study both direct as well as indirect costs for the where the labor includes the navigation system. Once the bid is submitted or even being proposed, then it’s the job of the engineers and audit personnel is going to finish the rest. These comprise of human resources, cost, material as well as time required in order to finish the task. Once technical solution is provided, then only the VectorCal will able to calculate the cost which is directly related to the task and also to find out both direct as well as indirect cost for finishing the navigation system.
Many companies fail to make out information which is related to the production level for a particular item for a plan. Leading in improper pricing of a material as well as particular need in order to finish the task, this makes the company to make shortcuts in order to meet the demands but going to supply the government for certain services which written in an agreement. CEO can make use of indirect cost, this helps in variety of cost. These comprise of the management, financial and also the expenses which are related with the general management and administration (G&A). G&A comprise of business unit, which means expenses should acquire general business unit.
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