Dietetic Technician Practice Test

What is a probable cause of exceeding the budget on labor costs?

1. Too many self-serve stations

2. Employee overtime

3. Understaffing

4. Improper employee training

The correct answer is: Employee overtime

Employee overtime is likely to be a significant factor contributing to exceeding the budget on labor costs. When employees work beyond their standard hours, typically at a higher pay rate, it increases overall labor expenses. This situation can arise from various operational demands or unanticipated surges in work volume that require additional hours from staff. While other factors such as too many self-serve stations, understaffing, and improper employee training can also impact labor costs, they do not have the direct financial implications as overtly as overtime. Excessive overtime often signals inefficiencies, whether due to scheduling issues, unexpected demand, or inadequate staffing levels. Therefore, monitoring and managing overtime effectively can play a key role in maintaining budgetary control within labor costs.