consideration by management, some overhead expenses (e.g., sales, general and administrative expenses) can be adjusted by management, and the specific allocation of each expense to each category will be decided under cost accounting. In recent years, fixed costs gradually exceed variable costs for many companies. There are two reasons. Firstly, automatic production increases the cost of investment equipment, including the depreciation and maintenance of old equipment. Secondly, labor costs are often considered as long-term costs. It is difficult to adjust human resources according to the actual work needs in short term. As a result, direct labor costs are now regarded as fixed costs. See also Flat rate Cost curve References Costs Management accounting Production economics