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Sally is a freelance editor. She is paid by the page for each page that she edits. Sally is an hourly employee.
Direct Costs
Expenses that can be directly tied to the production of a specific good or service, such as raw materials and labor.
Shoe Department
A specialized division within a retail store or company dedicated to the sale and promotion of footwear.
Fixed Manufacturing Cost
Costs that do not vary with the level of production output, such as rent, salaries, and insurance, which are necessary for the production process but remain constant regardless of the units produced.
Units Produced
The total number of units of product completed in a given period by a company.
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