Various costs, as given below, are associated with running a commercial bakery that supplies baked goods to

Question:

Various costs, as given below, are associated with running a commercial bakery that supplies baked goods to local coffee shops:

1. Account manager?s salary.

2. Rent on building.

3. Flour used in the making of croissants.

4. Bakery manager?s salary.

5. Wages of bakers who are paid on a piecework basis.

6. Depreciation of commercial ovens used in baking.

7. Insurance on the building.

Required:

Classify each cost as being either variable or fixed with respect to the quantity of baked goods supplied. Also, indicate whether each cost would typically be treated as a direct cost or an indirect cost with respect to the quantity of baked goods supplied. Prepare your answer sheet as shown below:

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Related Book For  book-img-for-question

Introduction to Managerial Accounting

ISBN: 978-1259105708

5th Canadian edition

Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan

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