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Running Head: BUSINESS1BusinessStudents NameInstitutional AffiliationDateBUSINESS2Food and beverageLabor cost assumes a very important function in both small and large businessventures. Entrepreneurs regularly contract representatives to execute diverse business tasks.The management accounting gives businesspersons a precise investigation of labor charge.Each sort of corporate task is divided into groups for expense-accounting determinations.Businesspersons use expense accounting to dispense labor charge to the products deliveredby the business. There are a number of labor cost principles that can be used in the planningof costs in food and beverages. They include; variable, fixed, direct and indirect labor costprinciples. Variable labor costs refer to costs that changes dependent on the amount ofproduction yield. Hourly labourers are widely recognized kind of adjustable tasks. Severalkinds of business ventures employ hourly workers in order to assure that corporate chargesdon't outdo assessed revenue.Fixed labor costs refer to costs that continue as before paying little heed to theorganization's productivity. Proprietors, executives, directors, managers, supervisors, andexecutives are the regular sorts of fixed work in business ventures (McCadden, 2018). Thesepeople for the most part gain a fixed reward compensating regardless to time worked in thecorporate. Industrialists utilize fixed wage rates to refrain from compensating officers anddir ...


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