Is a direct labor rate a variable cost or a fixed cost?

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Is a direct labor rate a variable cost or a fixed cost?

Why?

2007-05-17 05:26:45 · 2 answers · asked by M S 1 in Business & Finance ➔ Other - Business & Finance

2 answers

Its a variable cost.

WHY?

Because the amount of that cost VARIES depending on the number of hours that your employee work in that given time period.

2007-05-17 05:32:59 · answer #1 · answered by USM987 3 · 0⤊ 0⤋

If you signed a contract with labor which requires you to pay them either way, then this is a fixed cost. If not, then you are faced with a variable cost

2016-05-20 21:15:22 · answer #2 · answered by ? 4 · 0⤊ 0⤋