What Is Burdened Cost?

What Is Burdened Cost?

Labor burden is the actual cost of a company to have an employee, aside from the salary the employee earns. Labor burden costs include benefits that a company must, or chooses to, pay for employees included on their payroll.

What is the burdened?

Burdened payroll refers to the costs over and above gross compensation that you bear for an employee to perform work for you.

What is the burdened cost?

A Burden Cost refers to the hidden labor and inventory charges companies pay in their manufacturing processes. It is helpful for small businesses to calculate these numbers as burden costs can affect a company's profitability.

Sarah Jenkins
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Sarah Jenkins

Sarah Jenkins is a veteran tech journalist with over 12 years of experience covering artificial intelligence, mobile innovations, and digital ethics. Her insights have appeared in leading technology publications worldwide.