An organization needs to consider the entire cost related to running its business in order to determine its profitability.  Burden in business refers to the hidden or indirect costs a company pays as part of its operations and is effectively the real cost of doing business. Calculating the burden rate of a business is important for determining its profit margins and to help it remain competitive in the marketplace. The burden for most businesses is the hidden labor and inventory costs companies pay as part of providing their goods or services to customers,  giving them a more accurate picture of the true cost of such provision.