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The purpose of Labor Cost Productivity measures the amount of goods & services by one hour labor. To determine how productive you available resources.
You can measure employee productivity with the labor productivity equation: TOTAL OUTPUT/ TOTAL INPUT. We call it as well average cost of labor per unit of output produced. For example if the company Generated total amount of goods or services AED 20,000 and utilizes 500 hours, therefore AED 20,000/ 500hours = AED 40/ hour is the cost for a labor.
