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If the strategy-organization linkage is flawed, then the organizational structure may need to be changed.
Overhead
All indirect costs of running a business that are not directly associated with the production of goods or services, such as rent, utilities, and administrative salaries.
Direct Labor
The wages and benefits paid to employees who directly manufacture or produce the products of a company.
Labor Costs
The total expenses that a company incurs due to the employment of staff, including wages, benefits, and taxes.
Predetermined Overhead Rate
An estimated charge per unit of activity used to allocate overhead costs to products or services, calculated before the accounting period begins.
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