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It depends with the nature of labour in factory, if the labor is on daily basis or for specific number of units produced then it is variable cost but if labor has no connection with the volume of production of units then it is fixed cost as they have to pay no matter production is done or not.

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Q: Is factory labor fixed cost
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Related questions

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.


Please can you tell me whether labor costs may be both fixed and variable costs?

Labor cost can be fixed as well as variable. That labor which varies with changes in level of production then it is variable cost but if labor remain fixed then it is fixed cost.


Is the cost of a new factory an example of a fixed cost?

yes it is an example of fixed cost


Is direct labor 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.


Is direct labor 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.


Is Factory insurance fixed cost?

Factory insurance is considered a fixed cost within a monthly or annual budget. When putting together a budget that goes longer than one year factory insurance would not be considered a fixed cost.


What are examples of fixed and variable cost factory?

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


Is indirect materials factory a fixed or variable cost?

no


Is depreciation on factory machinery fixed cost?

Yes


Is insurance on factory building a fixed cost?

The cost of insurance premia on factory building is recurring expenditure and to be shown on the lefthand side of the Profit & Loss A/c of the company. This not at all a fixed cost.


Is indirect labor a variable cost?

If indirect labor change with the change of units of product then indirect labor is a variable cost. If change in the quantity of units has no impact on indirect labor cost then it is a fixed cost.


Is labor a fixed cost?

Labor costs are fixed with respect to the price of each unit. This is because it takes the same amount of time to produce each identical unit. However, in the bigger picture labor is a variable cost. You cannot be certain how many hours people are going to work until after they do.