IS INDIRECT LABOR A FIXED COST? Fixed costs arebusiness expensesthat remain constant, regardless of thebusiness activity. Indirect labor costs can either be fixed or variable. For example, the salary of the manager is fixed and has to be paid irrespective of the business activity. ...
See the definitions of total fixed cost and total variable cost. Related to this QuestionWhich of the following is a fixed cost? a. insurance b. direct material c. direct labor d. freight costs on products Which of the following would be con...
Inventory control is more than maintaining inventory records. Methods of inventory control vary depending for the most part on the cost of the materials and their importance to the manufacturing process. The principal labor costs are wages paid to production workers. Variable costs, fixed costs and...
The labor cost per unit is obtained by multiplying the direct labor hourly rate by the time required to complete one unit of a product. For example, if the hourly rate is $16.75, and it takes 0.1 hours to manufacture one unit of a product, the direct labor cost per unit equals $1.68 ...
Wages, including minimum wages, are considered semi-variable. While the base rate may be fixed, any additional money paid to employees for extra work makes it a variable cost. Sponsored Trade on the Go. Anywhere, Anytime One of the world's largest crypto-asset exchanges is ready for y...
Working hour systems and cost savings Work hour systems define specific work hours, rest periods, and overtime rates for employees. In China, there are three main work hour systems: the standard work hour system, the comprehensive work hour system, and the non-fixed (flexible) work hour syst...
Labor demand is determined by the amount of wage the employers would offer and the number of workers who would accept the wage and join the firm or company. Labor demand also depends on the demand of the product and the cost of the other resources....
When there are overtime regulations, monthly minimum wages are stipulated for normal working hours and, therefore, impose a constraint on the unit cost of workers and hours. Based on the fixed-job model (Trejo, 1991), we analyze the effects of monthly minimum wages, considering the influence ...
The expected lifetime income of the worker is: W0=w10+δm20. Given that the worker is risk-averse, a risk-neutral firm who wished to hire this worker for two periods could do so by paying a fixed wage w* per period at an expect cost of W0−δr2σ2, where r = −u″(m)/u...
A) Property taxes B) Expenditures for raw materials C) Fuel cost D) Wages for unskilled labor Types of costs Cost of production is divided into two types: Fixed costs and variable costs. Fixed costs are the costs which do not cha...