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What is the difference between direct labor savings and labor cost avoidance savings from a managerial perspective?
Wiki User
∙ 12y ago
Direct labor savings are savings that a company receives from reducing current labor costs, whereas cost avoidance is savings from an expected increase in expenses. This increase could be due to opportunities driven from direct procurement management and decisions, although the additional expenses might not have been budgeted for directly.
Wiki User
∙ 12y ago
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