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Jessica Nichole Sims

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Alena Kulas

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4y ago

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Please can you tell me whether labor costs may be both fixed and variable costs?

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.


Is direct labor a variable cost or product cost?

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.


Is indirect labor 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.


Is direct labor a fixed cost?

If salary or wage of direct labor workforce is fixed irrespective of number of units manufactured by them then it is fixed cost other wise it is variable cost.


Is direct labor fixed Cost?

If salary or wage of direct labor workforce is fixed irrespective of number of units manufactured by them then it is fixed cost other wise it is variable cost.


Is labor always a variable cost?

It depends on the nature of payment and work, if labor is fixed and don't have any relation with the volume of production then it is fixed otherwise it will be variable.


Examples of variable cost and fixed cost?

Direct labor and direct material is example of variable cost which increase with each increase of unit. Factory rent is example of fixed cost which remains fixed even in change in number of units produced.


Is direct material and labor a fixed cost?

If direct material and direct labor remains fixed irrespective of production volume then these are fixed costs otherwise these are variable costs and normally these are variable costs because it varies with the production volume.


Is labor a fixed cost?

Labor costs are fixed with respect to the price of each unit. This is because it takes the same amount of time to produce each identical unit. However, in the bigger picture labor is a variable cost. You cannot be certain how many hours people are going to work until after they do.


Is factory labor fixed cost?

It depends with the nature of labour in factory, if the labor is on daily basis or for specific number of units produced then it is variable cost but if labor has no connection with the volume of production of units then it is fixed cost as they have to pay no matter production is done or not.


Fixed cost variable cost equals?

Fixed cost and variable cost is equal to total cost as per following formula: Total Cost = Fixed Cost + Variable Cost


Is clerical salaries a fixed cost or variable cost?

its a fixed cost