A COMMON MODEL FORANALYSISOF LABOR COST-BASED RATE OF RETURNOF THE INDUSTRIAL ENTERPRISE

Rositsa Ivanova ()
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Rositsa Ivanova: University of National and World Economy, Sofia, Bulgaria

Economic Science, education and the real economy: Development and interactions in the digital age, 2020, issue 1, 93-105

Abstract: Manpower is among the key production resources for an enterprise‘s business. The question of the effectiveness of its use is topical at all phases and stages of the industrial enterprise‘s development. The effectiveness ofmanpower use is analyzed and evaluated by means of the productivity of labor. Productivity of labor has direct impact on labor resources-based rate of return –an indicator describing the final effectiveness of manpower use. In its turn, labor resources-based rate of return is a factor that affects labor cost-based rate of return (costs for salaries and employee benefits) –describing the final effectiveness of the costs incurred by the enterprise in terms of manpower functioning.A model for analysis of labor cost-based rate of return is developed through the determined factor modelling method. The indicator labor cost-based rate of return of industrial enterprises is the object of this report, and the subject of this study covers the methodology for analysis of this indicator. It is aimed at proving the practical usefulness of the methodology for analysis of labor cost-based rate of return. The analytical information so obtained enables the industrial enterprise‘s financial management to make reasonable and timely decisions for the management of manpower costs.

Keywords: rate of return; production resources; labor costs; analysis models; factors (search for similar items in EconPapers)
JEL-codes: M49 (search for similar items in EconPapers)
Date: 2020
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