Question
A) For each of the following independent situations, use a X to indicate the nature of the costs as variable, fixed, mixed, or step costs.
A) For each of the following independent situations, use a X to indicate the nature of the costs as variable, fixed, mixed, or step costs. The first one is done for you.
| Variable cost | Fixed cost | Mixed cost | Step cost |
The depreciation cost of a machine that is calculated on a straight-line basis. |
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The salary of a legal secretary in a law firm |
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A lease contract for a truck that requires a monthly payment of $200 plus $0.07 per kilometre. |
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The cost of lumber for a homebuilder. |
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A cell phone contract where there is a minimum cost per month plus additional cost for usage. |
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The cost of internet service that is calculated based on hours of usage. |
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The salary cost of seasonal tax preparers for a CPA firm. One tax preparer can prepare 100 tax returns per month. |
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A factory supervisors salary |
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The cost of sugar in the production of soft drinks. |
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The cost of reimbursing employees for the use of their automobiles where they are paid on the basis of the number of kilometres driver each month. |
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The cost of leasing an automobile where the lessee is granted a certain number of kilometres during the |
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lease, then is charged extra beyond the maximum allowed. |
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The cost of sales supervisors salaries where 1 supervisor can supervisor 10 employees. |
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The delivery cost for a courier where the costs include wages of an employee, depreciation of the vehicle, and fuel costs. |
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