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A growing trend is for franchisers to buy out their part of the business from their franchisees.
Labor Rate Variance
The difference between the actual cost of labor and the expected (or budgeted) cost, often analyzed in cost accounting.
Labor Efficiency Variance
A metric that assesses the difference in actual versus budgeted labor hours used, valued at the standard wage rate, to gauge workforce productivity.
Work in Process Account
An account that tracks the costs associated with partially completed goods in the manufacturing process.
Raw Materials Account
An account used to track the costs of raw materials that are purchased but not yet used in production.
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