Solved: Management treating direct labor as a variable cost, Business Law and Ethics

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Management treating direct labor as a variable cost

Problem:

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. 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?

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Business Law and Ethics: Management treating direct labor as a variable cost

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