Are wages period costs?
Answer . In relation to total wage it is variable cost because as many hours you work as much you get but at other side wage rate with comparison to hour is fixed cost bec…ause it does not change from one hour to other hour. For example: if somebody says that i will give you $10 per hour so now as many hour you will work you will get according to it. But other side if somebody says that i will give you $10 per hour so whether you take an hour to complete a task or complete before that you will get $10 so in this sense you can say that it is fixed.
Period cost is the cost which must be incurredby business and not influenced with the fact whether there is anyproduction or not in fiscal year.
For permanent staff, Yes it is.
A depression is a temporary slowdown characterized by reducedpurchasing power, massive unemployment, excess of supply overdemand resulting in falling prices, and a lack of con…fidence in thefuture. Depressions are also sometimes known as "slumps". Majordepressions can last for years.
Economic depression. (:
Not at all. Many if not most wage earners get no cost of living adjustment. Those who do get significantly less than 100% of the cost of living - keep this in mind the next ti…me you hear that wage increases cause inflation!
wages are variable cost reason being is that wages are being used over and over again and does not remain constant.
Formula for prime cost is as follows: . prime cost = direct material + direct labor . So according to above mention formula yes it is prime costbecause whitout labor no unit… of product can be manufactured.
Yes normally fixed costs are period costs because these costs haveto be paid no matter production done or not.
Yes selling cost not directly relate to production of units that'swhy it is period cost.
Periodic cost is that cost which donot related with production ofunits and it must be incurred no matter production is done or notlike depreciation.
Wages are generally based on an hourly rate, therefore they are generally a variable cost. Think for instance at a manufacturing business and the production of a specific prod…uct. A calculation can be made on the labour cost needed (budget), which will later be compared to actual cost incurred. These are generally based on a number of labour hours needed/used multiplied by an hourly rate. Salaries are generally considered a fixed cost.
Yes advertising cost is period cost as it is not part of productcost and advertisement donot tide up with production of units.
A raise in the minimum wage causes a significant increase in the cost of living. Although less the 1/10 of 1% of people are paid just the minimum wage there are numerous emplo…yment contracts tied to that number. An example in a collective bargaining agreement may state a particular job will pay 3,4 or 5 times minimum wage. So if minimum wages increased by 25 cents per hour that contract would automatically pay 75 cents to $1.25 per hour more causing goods and services to increase in order to compensate.