Question
26) Identify the following planned costs as: (A) purely variable costs (B) discretionary fixed costs (C) committed fixed costs (D) mixed costs (E) step
26) Identify the following planned costs as: (A) purely variable costs (B) discretionary fixed costs (C) committed fixed costs (D) mixed costs (E) step costs 1. Mortgage payment on factory building. 2. Electricity used in operating equipment. The utility company charges a base rate of $100 per month plus $0.10 per hour. 3. A lump sum amount of advertising costs planned by a local restaurant. 4. Nursing supervisors' salaries (a supervisor is needed for every 10 nurses). 5. Training costs for employees. 6. Crew supervisor in small construction company. A new supervisor is needed for every 12 workers employed. Problems. 7. Sales commissions based on amount of sales. 8. Rental payment on a 30-year lease for office space in a private office building. 9. Public relations department at a large consumer-oriented company. 10. Management consulting services acquired to resolve company image 11. Insurance on factory machines. 12. Salaries of Chief Financial Officer and Chief Executive Officer.
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