Answer true or false: The average variable cost curve is U-shaped if we have first increasing marginal product of labor and then diminishing marginal product of labor. True or false? The average variable cost curve is U-shaped if we have first increasing marginal product of lab...
Which of the following is a variable cost? A. rent expense B. salary of plant manager C. direct labor costs D. straight-line depreciation expense Variable Cost: The term variable cost refers to costs that fluctuate wit...
Is Labor a Fixed Cost? Oh, you wish it was that easy. But labor can be a fixed cost or a variable cost. Fixed costs do not vary in relation to sales. Think business insurance or rent. Variable costs do vary in relation to sales. Think food costs, liquor cost, or COGS. Fixed la...
The salaries of certain employees such as hourly-paid administrative assistant may be variable i.e. they may increase or decrease during certain times in a year. IS INDIRECT LABOR OVERHEAD? Overhead covers the costs of running a business that is not directly associated with making a product or...
Variable costs: The more you produce or sell, the higher these costs will be. Examples include raw materials, direct labor, and commissions. Sales price per unit: This is how much you charge for each individual product or service. The break-even point calculation boils down to a simple form...
To determine the true cost of a direct labor employee, determine her total work hours for the year. Then multiply her hourly rate by her annual work hours to get her yearly hourly wages. Add all of your annual hidden costs together, including benefits and your portion of taxes. When you ...
This is about the difference between the normal labor cost and the real labor cost. Labor Variance Analysis Formula: Standard Wages – Actual Wages Alternatively, (Standard Hours x Standard Rate) – (Actual Hours x Actual Rate) It can be categorized into the following: ...
While just as integral to a company’s success, these employees work “backstage.” An easy way to tell the difference is by connection: if you cannot relate an employee’s job directly to one specific project, they are categorized under indirect labor. ...
These employees will receive the same amount ofcompensationregardless of the number of units produced. For others who are tied to an hourly job, putting in more direct labor hours results in a higher paycheck. Commissions Commissionsare often a percentage of a sale's proceeds that are awarded ...
Cost of revenue is the total cost incurred to produce and sell a product or service. It includes all the costs associated with the production process, such asraw materials, labor, overhead expenses. It also includes any other direct costs related to the production and delivery of the product...