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Labor cost can be fixed as well as variable. That labor which varies with changes in level of production then it is variable cost but if labor remain fixed then it is fixed cost.
Managers will use this because it separates the fixed from the variable costs. It helps them make short term decisions better by not looking at long term fixed costs which can not be easily changed.
difference between fixed and variable inputs
Variable
Variable
The difference between fixed overhead and variable overhead is that fixed overheads are the ones that do not change regardless and variable overheads are the ones that vary depending on the number of units that it produces. An example of fixed overhead is a managers salary.
Labor cost can be fixed as well as variable. That labor which varies with changes in level of production then it is variable cost but if labor remain fixed then it is fixed cost.
Variable rate mortgages are mortgages that are not fixed. A person would have to decide which mortgage they would like to try for, either a fixed mortgage rate or a variable rate mortgage.
Managers will use this because it separates the fixed from the variable costs. It helps them make short term decisions better by not looking at long term fixed costs which can not be easily changed.
depending on if the expense is a recurring is whether or not it can be fixed . most expense are unseen and therefore can not be put in as a fixed cost
VARIABLE. When this variable has a fixed number assigned to it and does not change, it is called a "fixed variable".
Labor costs can be considered fixed, variable or both depending on the business. If workers are hourly (e.g., factory workers, delivery drivers, etc.), labor is generally considered variable. If workers are on an annual salary, but are hired and fired based on production needs (e.g., floor managers, plant managers, etc.), labor can be considered variable. If workers are on an annual salary, but are not hired and fired based on production needs (e.g., Chief Financial Officer, Director of Operations, etc.), labor can be considered fixed.
difference between fixed and variable inputs
Variable
Variable
Fixed
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