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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 989 |
Essay's paper body
The issue here, however, is that such analysis ignores the fact that 60 production workers were laid off when production gave way to outsourcing, making a large portion of fixed cost seem variable (as all costs are variable in the long run). Account 1500 has cost line 4817 + .08L. It makes sense that salaried personnel are mostly fixed expenses...
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It makes sense that salaried personnel are mostly fixed expenses. Accounts 2000 and 3000 were mostly variable as would be expected, being more directly connected to production. Account 5000, utilities, can be a tough issue to tackle when considering the nature of the costs. Certain utilities must be run and are fixed, while others will vary with production...
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