Below is a table showing the various costs incurred by various companies. In each column, indicate the
Question:
Below is a table showing the various costs incurred by various companies. In each column, indicate the proper classification of these costs. Write NA if not applicable.
Yes in column 2 identify whether it is a variable, fixed or mixed and column 3 direct or indirect (product as the cost object)
Costs | Direct or Indirect (Product as the cost object) | |
Variable, Fixed or Mixed | ||
a. Depreciation of the production plant | ||
b. Depreciation of the general office equipment | ||
c. Wages of production line employees | ||
d. Paper and toner for the photo-copying services | ||
e. Raw materials used in the production of sports equipment | ||
f. Wages of the general office staff | ||
g. Maintenance cost of the production equipment | ||
h. Advertising and promotion expense | ||
i. Shipping cost of product sold | ||
j. Salaries of plant supervisor | ||
k. Interest on bank loan | ||
l. Property tax on the production plant | ||
m. Commissions paid to sales personnel | ||
n. Salaries of the executive staff | ||
o. Car leases for sales agents | ||
p. Electricity to run saws in a lumber yard | ||
q. Food for company banquet | ||
r. Sugar in a bakeshop | ||
s. Chips in computer manufacturing shop | ||
t. Wages of painters in a furniture manufacturing company | ||
u. Wood in cabinet-making shop | ||
v. Steel in machine fabrication shop | ||
w. Property taxes of office building | ||
x. Insurance of factory workers | ||
y. Calculators used in the store outlet |
International Finance Theory and Policy
ISBN: 978-0133423648
10th edition
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz