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       #Post#: 47--------------------------------------------------
       The labor share is calculated as follow
       By: Mithila Akter Date: August 30, 2023, 5:03 am
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       Executive Compensation Executive compensation paid to directors,
       accounting consultants and auditors is also part of personnel
       expenses. Note that this is separate from salary benefits.
       Unlike employees, executives don't get any benefits. The
       difference is that salaries and perks can be recorded as
       deductible expenses, while executive compensation cannot.
       Severance pay The fifth is pension. This is a bonus paid to
       retired employees and directors. There are various types of
       pensions. Lump-up pension (one-time payment upon retirement)
       Retirement pension (continued as an annuity payment after
       retirement) There are two types, and each company adopts one of
       these forms.
       If you do not comply with the company's employment regulations,
       you will not be able to receive retirement benefits even if you
       resign. Let's calculate the labor cost index! How to find and
       calculate labor share? After determining Telegram Users Number
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       the basic situation of
       personnel costs, we will introduce indicators to judge the
       current level of personnel costs in actual management and
       operations. There are several indicators, but to facilitate
       understanding, I will use the most commonly used "labor share"
       this time. "Labor share" is a numerical value that represents
       "labor costs as a percentage of gross profit. Gross profit sales
       minus cost of sales. In accounting, it is also called gross
       profit on sales.
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       Personnel cost gross profit labor share Please note that this is
       gross profit, not sales. Although there is a method of
       calculating based on sales, it cannot deal with costs that vary
       by department or department, and cannot make a fair evaluation
       within the company as a whole. Gross profit can solve this
       problem. And if you find the labor share, you can find the labor
       cost of the profit that is left after sales minus costs. In
       other words, if the labor share is too high, there may be a
       situation where the number of employees does not meet the labor
       cost, or a situation of overstaffing occurs. Conversely, if it's
       too low, you may not be able to properly return profits to your
       employees. In this way, from the labor share, we can read the
       actual productivity and treatment of enterprises.
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