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.
A variable cost is a cost that changes in relation to variations in an activity. In a business, the activity is frequently production volume, with sales volume being another likely triggering event.Thus, the materials used as the components in a product are considered variable costs, because they vary directly with the number of units of product produced.n a business, the activity is frequently production volume, with sales volume being another likely triggering event. Thus, the materials used as the components in a product are considered variable costs, because they vary directly with the number of units of product produced.