... that simple. There are many other individual costs which an organisation must bear in the employment of individuals. These may include employer's national insurance contributions, pension payments and insurance policy payments. In most organisations, labour and wage costs account for the majority of direct costs. 2. Materials - the costs of materials differ according to the sector in which an organisation operates. As organisation that operates in the primary sector has comparatively low material costs. At the other end of the scale, in the tertiary sector, the costs of finished goods to a retailer for example, will be extremely high. The principal elements that affect the costs of materials should be included in the organisation's overall budgetary controls. In addition, an organisation must also consider the cost of materials in relation to market demands, as these will inevitably cause periodic fluctuations in material costs. Only those materials that are actually ...

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