Labor Cost %

Labor cost percentage is a financial term used to describe a business' labor costs relative to its overall revenue. Being able to calculate labor cost percentage is an important business skill. It allows you to determine how efficiently a business is operating. It also helps you make more informed decisions regarding potential human resources changes.

Resource:

• Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.
• Bagley, Soren. "How to Calculate Labor Cost Percentage." EHow. Demand Media, n.d. Web. 06 Aug. 2015.