Identifying fixed and variable costs A list of cost accounts for a manufacturing business is shown on the next page.

REQUIRED For each of the costs listed indicate whether the cost would most likely be primarily fixed or vary with the number of units produced.

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Sales commissions Depreciation, production plant Direct materials.... Plant maintenance Depreciation, production equipment Salary of the company president Electricity for production equipment Heating costs for the production plant Direct labor Indirect labor. ... Property taxes for the production plant Plant fire insurance... Costs of shipping completed units to stores Patent royalty on each unit produced... Payroll taxes on production employees Fixed Variable