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moved factories to other countries

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What is a consideration when determining the amount of specialized division of labor in a workplace?

For example, the degree of specialization and division of labor can be related to the size of the organization; typically, small and mid-sized employers are not able to cost justify specialized division of labor.


Direct labor cost is an example of a period cost?

false


Is direct labor cost a relevant cost?

If direct labor cost creates impact or influences the decision then it is relevant cost but if direct labor is not creating influence or changing in decision then it is irrelevant cost for example direct labor cost remain same irrespective of whatever the decision then direct labor cost is also irrelevant.


Why is labor a variable cost?

Labor cost is variable cost because labor is paid for every single unit of product is made. For example if labor cost for making 1 unit is 10 then making 10 units will be 100 so as much as production level changing labor cost changing that;s why it is variable cost.


What is a labor costs?

Labor Cost is the direct labor utilized to manufacture the product. For Example: 10 labor hours required to manufacture 1 unit of product and labor cost per hour is 10 so total labor cost to manufacture 1 unit is 100 (10 * 10).


What should the relationship of material cost to labor cost be?

multiply the cost of labor by the cost of materials. add the cost of labor and materials. subtract the cost of labor from materials. divide the cost of labor by the cost of materials. which one is correct


What is an example of direct labor cost for an airplane manufacturer a. cost of oil lubricants for factory machinery b.cost of wages of assemble worker c. salary of plant superviso?

B) Cost of wages of assembly worker is a direct labor cost.


What does an unfavorable direct labor price variance indicate?

Unfavorrable direct labor price variance indicates that business has incurred more direct labor cost for production of units of product then standard labor cost. For example if standard cost of direct labor for producing 1 unit is 10 and company incurred 105 for making 10 units then extra 5 is unfavorable direct labor cost variance.


What do you mean by labor cost variance?

Labor cost variance means the difference between standard labor cost and actual labor cost.


What is the average direct labor cost in manufacturing?

Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2


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.


When would you use direct labor as cost driver?

In labor intensive industry direct labor cost is used as cost driver.