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 product. 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.
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.
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.
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.
The relataionship of cost between the level of production is determine the fixed or variable cost if cost change with production level then it is variable cost otherwise fixed cost.
Variable cost = Total Cost/ 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.
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.
Fixed cost and variable cost is equal to total cost as per following formula: Total Cost = Fixed Cost + Variable Cost
its a fixed cost
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.
The relataionship of cost between the level of production is determine the fixed or variable cost if cost change with production level then it is variable cost otherwise fixed cost.
fixed and variable
variable
Type your answer here... fixed cost + variable cost = total cost
Variable cost = Total Cost/ fixed cost
it is obviously variable
The main difference between fixed and variable APR is that fixed APR stays the same throughout the loan term, while variable APR can change based on market conditions. Fixed APR provides more predictability in monthly payments, while variable APR can lead to fluctuating payments. The impact on the overall cost of borrowing is that fixed APR offers stability and easier budgeting, while variable APR can result in lower initial rates but potentially higher costs over time if rates increase.