Are wages period costs?
Period cost is the cost which must be incurredby business and not influenced with the fact whether there is anyproduction or not in fiscal year.
For permanent staff, Yes it is.
A depression is a temporary slowdown characterized by reducedpurchasing power, massive unemployment, excess of supply overdemand resulting in falling prices, and a lack of con…fidence in thefuture. Depressions are also sometimes known as "slumps". Majordepressions can last for years.
Economic depression. (:
Factory manager is not directly related to theproduction of units of product so it is not direct labor cost butit is included in overhead costs.
Yes. Variable cost varies with the activity of the business. Unless the wage given is in accordance with the activity level for e.g. piece rate, then it should be fixed cost.
wages are variable cost reason being is that wages are being used over and over again and does not remain constant.
Formula for prime cost is as follows: . prime cost = direct material + direct labor . So according to above mention formula yes it is prime costbecause whitout labor no unit… of product can be manufactured.
Yes normally fixed costs are period costs because these costs haveto be paid no matter production done or not.
Yes selling cost not directly relate to production of units that'swhy it is period cost.
Periodic cost is that cost which donot related with production ofunits and it must be incurred no matter production is done or notlike depreciation.
Wages are generally based on an hourly rate, therefore they are generally a variable cost. Think for instance at a manufacturing business and the production of a specific prod…uct. A calculation can be made on the labour cost needed (budget), which will later be compared to actual cost incurred. These are generally based on a number of labour hours needed/used multiplied by an hourly rate. Salaries are generally considered a fixed cost.
Yes advertising cost is period cost as it is not part of productcost and advertisement donot tide up with production of units.
A raise in the minimum wage causes a significant increase in the cost of living. Although less the 1/10 of 1% of people are paid just the minimum wage there are numerous emplo…yment contracts tied to that number. An example in a collective bargaining agreement may state a particular job will pay 3,4 or 5 times minimum wage. So if minimum wages increased by 25 cents per hour that contract would automatically pay 75 cents to $1.25 per hour more causing goods and services to increase in order to compensate.