Salespeople are paid a commission only if they sell products or services, so this is clearly a variable cost. However, if they are paid salaries (where they are paid no matter how many hours they work), then this is a fixed cost. If a company bills out the time of its employees, and those employees are only paid if they work billable hours, then this is a variable cost. Production supplies, such as machinery oil, are consumed based on the amount of machinery usage, so these costs vary with production volume. Piece rate labor is the amount paid to workers for every unit completed (note: direct labor is frequently not a variable cost, since a minimum number of people are needed to staff the production area this makes it a fixed cost).
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