What action can effectively influence labor costs?

Accurately forecasting sales is a critical action that can effectively influence labor costs. When a business has a solid understanding of expected sales volume, it can optimize staffing levels to match customer demand. This means having the right number of associates scheduled during peak hours and minimizing staffing during slower periods, thereby avoiding overstaffing costs.

In contrast, deploying associates ineffectively can lead to high labor costs due to unnecessary overtime or underutilization of staff. Reducing communication with staff can create confusion and inefficiencies, while limiting associate training can result in a less skilled workforce, potentially impacting productivity and customer service. Effective sales forecasting allows for smart labor management, directly impacting overall operational costs and profitability.