Recent articles in the business press have reported that many employers are treating direct labor as a true variable cost. Employees are hired and laid of` regularly as the employer's needs dictate. One ankle referred to this practice as lapping and zapping employees' Mother article made reference to the new "just-in-time workforce"
Required
As a group, discuss whether direct labor is a fixed or a variable cost. What are the pros and cons of management treatment of direct labor as a variable cost? Are there ethical issues here?