It is a variable cost!!
If indirect labor change with the change of units of product then indirect labor is a variable cost. If change in the quantity of units has no impact on indirect labor cost then it is a fixed cost.
Indirect
Indirect labor is part of overhead costs and included in total product cost.
Indirect labour costs are not connected to the units of output so are classed as overheads these are connected to managers, secretaries, accountants and admin staff. So overheads are classed as total indirect costs because they will only be classed as prime costs if they where connected to the production of units of output Thanks Andrew Swift
Indirect labor is considered a period cost because it can't be traced by to the product. If a cost can be traced back to a product, then it is considered a product cost.
If indirect labor change with the change of units of product then indirect labor is a variable cost. If change in the quantity of units has no impact on indirect labor cost then it is a fixed cost.
Indirect
Indirect labor is part of overhead costs and included in total product cost.
Direct labor is variable cost as it varies with the change in level of production of units.
fixed and variable
Prime cost = direct materials + direct laborwhile conversion cost = direct labor + factory overhead( which includes indirect materials, indirect labor and other indirect costs
Indirect labour costs are not connected to the units of output so are classed as overheads these are connected to managers, secretaries, accountants and admin staff. So overheads are classed as total indirect costs because they will only be classed as prime costs if they where connected to the production of units of output Thanks Andrew Swift
Indirect labor is considered a period cost because it can't be traced by to the product. If a cost can be traced back to a product, then it is considered a product cost.
No. Variable cost is the same as direct cost because it can be varied directly to the cost centre or cost unit,while indirect cost can't be varied directly to it cost centre or cost unit.
no
direct or indirect cost which increases or decreases with production are variable overheads such as, indirect material, indirect labor, utilities, maintenancd expansis etc. expansis which does not fluctuate with increase or decrease of production called fixed overheads such as rent, salaries, insurance, professional membership like ISO etc.
Direct labor is variable cost as well as product cost but for variable cost it must vary with the change in production level otherwise it will be fixed cost.