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    Could you provide your feedback to these Accounting questions below?

    1. In what situation would payroll be considered a variable cost?
    2. Do you think that unallocated costs are something to avoid, a necessary evil, or an integral part of business?
    3. When do direct costs become tax deductible?

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    1. In what situation would payroll be considered a variable cost?

    Payroll would become considered a variable cost if the company is having to pay suppliers and distributors of their particular products. They are not only calculating the cost of the goods, but also needing to find ways in which to make sure that those companies are getting paid as well for their labor to put them together for everyone to benefit within their chosen industry. These are the means in which a variable cost is enacted, and this does determine if and when a person receives income from the products and services that are provided to everyone involved. Another instance is that of when a CEO has different branches in other parts of the nation and various countries. All of those ...

    Solution Summary

    This solution discussed payroll, unallocated costs and direct costs. The expert determines if direct costs become tax deductibles.