Saturday, November 2, 2019
Planning and Controlling Direct Labor Costs Term Paper
Planning and Controlling Direct Labor Costs - Term Paper Example As a result of which the total revenue and total sale of the organization might get increased that may amplify its market share and brand value to a significant extent among others. Apart from this, if the organization became successful in reducing its actual cost, then it might present its product or services at a quite competitive cost as compared to its rival players. However, due to which, a huge range of customers might get attracted towards the brand and the product line that may amplify its demand and profit margin in the market among many other rival players (Hansen, Mowen and Passalacque 29). Thus, it might be stated that in order to enhance the range of profits of the organization by a consistent range, planning is the most essential facet. In order to enhance the sustainability and position in long run, the organization might plan for long term strategies. It might prove effective in increasing the overall costs and revenues thereby reducing the total costs. The importance of the study is to analyze the importance of planning for an organization in this age, in order to amplify its total revenue and reduce the total cost. This might act as the first stage of budgeting that may prove effective for the organization to forecast its future expected sales, earning, expenses etc. Along with this the process of planning and staffing also includes the future forecast of the changes of the business and economic environment that may offer significant impact over the operations and functions of the organization. Along with planning and staffing, forecasting is another important step of budgeting, that helps to determine, the degree to which the long term strategies are useful or feasible for the organization in long run. However, this process of forecasting is a mixture of two important functions such as planning for long period of time entirely based on real goals or objectives of the organization as well as short term planningÃ¢â¬â¢s.