Are indirect wages fixed or variable?

Indirect labor costs can be fixed costs or variable costs, depending on the situation. In a manufacturing setting, administrative staff, maintenance staff, accounting staff, and supervisors would all be considered indirect labor.

Are wages a fixed expense variable expense or income?

Wages paid to workers for their regular hours are a fixed cost. Any extra time they spend on the job is a variable cost.

Is direct wages a variable cost?

Variable costs for a manufacturer would include things like direct labor of hourly workers, other wage employees, direct materials, applied overhead, sales commissions, and depreciation under units of production method.

Is direct wages a fixed cost?

A direct cost can be a fixed cost or variable cost. A fixed direct cost might be the salary of an employee who performs direct labor. The employees who work on the production line are considered direct labor. Their wages can also be attributed as a direct cost of the projects.

Are all variable expenses indirect expenses?

Direct costs are expenses that can be directly tied to the production of a product and can include direct labor and direct material costs. Variable costs can also be indirect costs such as electricity for the production plant since it can’t be tied to one specific product.

What are examples of fixed expense?

Examples of fixed expenses

• Rent or mortgage payments.
• Car payments.
• Other loan payments.
• Insurance premiums.
• Property taxes.
• Phone and utility bills.
• Childcare costs.
• Tuition fees.

What are considered fixed expenses?

What Are Your Fixed Expenses? Typical fixed expenses include car payments, mortgage or rent payments, insurance premiums and real estate taxes. Typically, these expenses can’t be easily changed. When you lower your fixed expenses, you automatically save more money each month or pay period.

What are indirect fixed costs?

– Indirect fixed costs are related to the general operations of your business. Those are costs such as rent, salaries of support functions, marketing programs and so on. The stand has a certain cost, which you’ll have to pay, whatever you do with your lemonade business.

Are all fixed costs indirect?

Fixed costs are associated with the basic operating and overhead costs of a business. They include items such as building rent, utilities, wages, and insurance. Most forms of depreciation and tangible assets qualify as fixed costs as well. Fixed costs are considered indirect costs of production.

Is Indirect cost a variable cost?

Variable costs vary with the level of production output and can include raw materials and supplies for the machinery. Variable costs can also be indirect costs such as electricity for the production plant since it can’t be tied to one specific product.

Are indirect costs fixed?

Much like direct costs, indirect costs can be both fixed and variable. Fixed indirect costs include things like rent. Variable costs include the fluctuating costs of electricity and gas.