I think this question is different in different regions if I am not mistaken. What I remember was, the reason best support “unit labor cost up”. I put Wage because it was increasing in the case.
sorry. the consensus is down.
Asia? I think in other region, the question was asking “WHETHER” unit labor cost is up or down. Unless there was a question like that and I couldn’t remember. If so, can you please shed some details about it?
Asia is whether it is up or down. Down is because productivity increased more than wages so overall cost is down.
EXACTLY! That’s why I think ymc’s response doesn’t apply. I am glad that I wasn’t crazy. What about the answer to other region’s similar question?
Final outcome Labor +2 Productivity +7 Result down cause more higher more productivity per unit than higher labor unit.
There was also a positive growth in capacity utilization rate stated, which would reduce the labor costs on a per unit basis by spreading it over more products. Think they wanted to trick you with the simple way of thinking that labor cost increased b/c they did PER HOUR, but they asked per unit…
Hong Kong here - asked if it’s going up or down. The answer is down because the productivity is going up faster than wages
Dont even need to think about productivity, wages… Capicity utilization increased…which means that you will benefit from operating leverage and it will drive you per unit production costs down. Down - 100% sure.