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.
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.
yes it is an example of 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.
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.
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.
yes it is an example of 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.
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.
examples of fixed cost factory are salary, rent, electricity bills while variable cost are purchase of raw materials,
no
Yes
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.
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.
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.