are wages variable or fixed costs?
16035
Wages paid to workers for their regular hours are a fixed cost. Any extra time they spend on the job is a variable cost. In a factory that makes dresses, the variable costs are the fabric and the labor used to make the dresses.
192262
Fixed costs in total does not change within a relevant range as the level of output increases or decreases, whereas variable costs in total vary in direct proportion to changes in output within a relevant range.
237936
Direct costs and variable costs are similar in nature and are both types of costs involved in production. Direct costs are expenses that can be directly traced to a product, while variable costs vary with the level of production output.
407799
Marginal costs are a function of the total cost of production, which includes fixed and variable costs. ... Since fixed costs are constant, they do not contribute to a change in total production costs. Therefore, marginal costs exist when variable costs exist.
625177
The two basic types of costs incurred by businesses are fixed and variable. Fixed costs do not vary with output, while variable costs do. Fixed costs are sometimes called overhead costs. ... In a production facility, labor and material costs are usually variable costs that increase as the volume of production increases.
304549
A variable cost is a corporate expense that changes in proportion to production output. Variable costs increase or decrease depending on a company's production volume; they rise as production increases and fall as production decreases. Examples of variable costs include the costs of raw materials and packaging.
667243
The cost per unit is derived from the variable costs and fixed costs incurred by a production process, divided by the number of units produced.
95887
Fixed pay is the fixed amount of salary that an employee gets at the end of the month whereas Variable pay is the incentive paid to the employee, monetary or non-monetary, based on their performance for the month. The ratio of fixed to the variable component, as a norm, varies based on the role the employee plays.
492340
Variable costs (aka variable expenses) Falling under the category of cost of goods sold (COGS), your total variable cost is the amount of money you spend to produce and sell your products or services. That includes labor costs (direct labor) and raw materials (direct materials).
916432
Fixed costs often include rent, buildings, machinery, etc. Variable costs are costs that vary with output. Generally variable costs increase at a constant rate relative to labor and capital. Variable costs may include wages, utilities, materials used in production, etc.
1408785
Although direct costs are typically variable costs, they can also include fixed costs. Rent for a factory, for example, could be tied directly to the production facility. Typically, rent would be considered overhead. However, companies can sometimes tie fixed costs to the units produced in a particular facility.
1324378
A company's total cost is composed of its total fixed costs and its total variable costs combined. Variable costs vary with the amount produced. Fixed costs remain the same, no matter how much output a company produces. ... On the other hand, a fixed cost does not vary with the volume of production.
1178692
Labor is a semi-variable cost. ... Variable costs vary with increases or decreases in production. Fixed costs remain the same, whether production increases or decreases. Wages paid to workers for their regular hours are a fixed cost.
1208733
The operating expenses refer to the specific costs after gross revenue is defined in the income statement. ... Fixed costs are costs that don't change regularly, whereas variable costs do. Fixed costs include lease payments, while variable costs include payroll, utilities and even raw materials.
140924
Electricity is a good example of a semi-variable cost. The base rate for service may be constant, but as production grows, power consumption and the company's electricity bills go up. In other words, there is both a fixed and variable aspect to semi-variable costs.
380938
Unit cost is determined by combining the variable costs and fixed costs and dividing by the total number of units produced. For example, assume total fixed costs are $40,000, variable costs are $20,000, and you produced 30,000 units.
1264542
Examples are rent, insurance, and taxes. Fixed cost per unit changes as volume changes. cost that remains constant regardless of sales volume. Fixed costs include salaries of executives, interest expense, rent, depreciation, and insurance expenses.