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Because the production manager's salary remains the same, regardless of the production level, this salary is a fixed cost, not a variable cost.

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Q: Is the production manager's salary is an example of variable cost?
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Are selling expenses fixed or variable cost?

selling expenses is a mixed costs. it is a mixture of both fixed and variable components. for example, in selling expenses in a retail shop; fixed costs are the employees salary. while variable cost will be their commission or bonus of the sale.


Is executive salary a fixed or variable cost?

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What is difference between gross salary and net salary?

Let's say your employer agrees to pay you $1000 per month, and then (for example) 20% of that is deducted for taxes and social benefits, so you only get $800. The gross salary is the salary before the deductions. In the above example, 1000. The net salary is after the deductions. In the example, 800.


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examples of fixed cost factory are salary, rent, electricity bills while variable cost are purchase of raw materials,


Why direct production labor cost might be regarded as a fixed cost rather than as variable cost?

Direct labor wages are normally Variable costs, charged directly to the Production Cost Account, what is commonly called WIP. It is commonly held that direct labor wages change proportionally to the changes of the production level. In fact, however, hourly wages are only related to a time unit, not to pieces produced. True direct wages are piece-work wages, but very few industries pay their workers by unit of production. We should have the option to treat a direct labor wage as a fixed cost, just as salary is a fixed cost. Monthly or hourly, these payment are paid by time interval, not by production unit

Related questions

What is the average salary for Production managers in seattle WA?

The average salary for production managers in Seattle WA is about $71,000 per year. This will vary depending on where they work and level of experience.


What's the salary of an print production manager?

The median salary of a print production manager is about $70,800. About fifty percent of all print production managers fall between $60,500 to $82,700.


Is labor cost fixed or vriable cost?

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.


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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.


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What is the average Chatter's district managers salary?

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