Automatic Data Processing Inc. (ADP) is a global business outsourcing services provider headquartered in Roseland, N.J. ADP is one of the largest payroll outsourcing providers in the world, and was an early adopter of a cloud computing operating model. According to executives, the vendor cuts paychecks for one in six Americans.
The reverse of fixed costs are variable costs, which vary with changes in the activity level of a business. Examples of variable costs are direct materials, piece rate labor, and commissions.
Variable Costs: Variable costs are costs that change with the amount of work. Examples of variable costs are hourly labor, the cost of material, the cost of supply, fuel for bulldozer etc. Direct Costs: Direct costs are expenses that are billed directly to the project. Examples of direct costs are team travel expenses, team wages, the cost of material used in a project, costs incurred for recognition and awards materials used to construct a building.