Explore BrainMass

Explore BrainMass

    Labor as variable cost

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Throughout the corporate world, businesses are transforming labor into a more flexible (and variable) cost. Among such companies are Hewlett-Packard, General Electric, DuPont, Sun Microsystems, and British Airways. Discuss whether direct labor is a fixed or a variable cost. What are the pros and cons of management treating direct labor as a variable cost? Are there ethical issues to be considered here?

    © BrainMass Inc. brainmass.com June 3, 2020, 11:32 pm ad1c9bdddf

    Solution Preview

    Labor is a bit of both. For those with a salary and firm hours, then fixed is the most likely choice. But sometimes there are issues such as overtime and seasonal help and special events and needs and the costs are not fixed, though a number of companies would never ...

    Solution Summary

    A discussion on labor as a variable cost and the ethical issues with the same.