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By developing a system to allocate these costs to jobs based on direct labor hours or some other appropriate allocation method, you'll have a better understanding of what jobs cost in "real time. The TCO methodology examines three major cost categories: annualized technology costs, direct labor and indirect labor: Chasing the lowest direct labor cost alone is typically not the best reason for choosing a geography, since direct labor costs do not comprise a major percentage of the costs of global manufacturing. |
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