Many firms consider wage costs to be variable costs. Why do academic book publishers usually consider their wage and salary costs to be fixed costs? Is the cost of travel fixed, variable, or can it be both? Briefly explain.

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Business

Arianna

20 October, 10:58

Many firms consider wage costs to be variable costs. Why do academic book publishers usually consider their wage and salary costs to be fixed costs? Is the cost of travel fixed, variable, or can it be both? Briefly explain.

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Singleton · Answer 1

Answer: This could be explained as follows

Explanation: Fixed cost are the cost which do not change with level of output and variable cost are those which does change with the level of output.

Wage sand salary cost are considered to be fixed as most of the firms pay their employees on monthly basis rather than on hourly or per unit basis.

Travelling cost can be both fixed or variable as per the situation as sometimes the travel is frequent and sometimes it is to be done for special purposes.