Question: As a group, discuss whether direct labor is a fixed or a variable cost. What are the pros and cons of management treating direct labor

"The Software Says You're Just Average," Business Week, February 25, 2002, p.

As a group, 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?

"The Software Says You're Just Average," Business Week, February 25, 2002, p. 126, Michelle Conlin. Overview 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.

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