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Without any government influences, the main driver of labor costs is supply/demand. Generally however, a system of minimum wages exists which raise labor costs to a particular level.
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∙ 9y ago
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Costs can either be prime costs or conversion costs but not both?
direct labor
Is Direct Labor included in Overhead costs?
Direct labor are not part of overhead costs and shown separately while indirect labor are part of overhead costs and included in overhead cost because those labor cannot be allocated separately or identifiable separately.
What costs are direct labor costs?
Salaries and wages of workers directly involve in goods manufacturing is direct labor cost.
In order to reduce labor costs what might a company do?
some companies have outsourced jobs to Another Country as they can reduce labor costs that way.
What is on overhead?
Overhead refers to the cost of a business in a particular period. Specifically, overhead points to fixed and indirect costs. They are non-labor costs. Non-labor costs are variable or fixed. Rent and salaries are examples of fixed costs. Advertising and supplies are variable costs.
Why do US companies outsource jobs?
To reduce labor costs
Which country is numberone in food production?
china
Costs can either be prime costs or conversion costs but not both?
direct labor
When would you use direct labor as cost driver?
In labor intensive industry direct labor cost is used as cost driver.
Is Direct Labor included in Overhead costs?
Direct labor are not part of overhead costs and shown separately while indirect labor are part of overhead costs and included in overhead cost because those labor cannot be allocated separately or identifiable separately.
What costs are direct labor costs?
Salaries and wages of workers directly involve in goods manufacturing is direct labor cost.
Why might a company move its production factory from Texas to Mexico?
To take advantage of lower labor costs
What is the formula to calculate conversion costs?
it is direct labor plus overhead costs
What has lower global costs of labor have caused?
Lower global costs of labor have left many highly skilled technical employees unemployed.
In order to reduce labor costs what might a company do?
some companies have outsourced jobs to Another Country as they can reduce labor costs that way.
What are the advantages of outsourcing?
Reduced labor costs.
What is on overhead?
Overhead refers to the cost of a business in a particular period. Specifically, overhead points to fixed and indirect costs. They are non-labor costs. Non-labor costs are variable or fixed. Rent and salaries are examples of fixed costs. Advertising and supplies are variable costs.
