What is the primary purpose of a labor report?
A) It communicates departmental proﬁtability.
B) It depicts the ideal distribution of labor in a ﬁrm.
C) It designates where labor is used in a ﬁrm.
D) It is a report designed to be read by parties external to the ﬁrm.

Question

Quizplus · Accepted Answer

The primary purpose of a labor report is to designate where labor is used in a firm. It breaks down the allocation of labor hours, costs, and productivity by department, task or project, and provides valuable insights into how efficient, productive, and profitable a firm is in terms of its labor utilization. The report helps managers, executives, and stakeholders make informed decisions about resource allocation, staffing, training, and process improvement. Unlike financial reports, labor reports are internal documents used mainly by management and employees, not external parties. Therefore, choices A, B, and D are incorrect.

What Is the Primary Purpose of a Labor Report