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Consider the six costs that follow. 1. Advertising and promotion costs of a do-it-yourself retailer 2. Surgical supplies used in a hospital's operating room 3.
- Consider the six costs that follow. 1. Advertising and promotion costs of a do-it-yourself retailer 2. Surgical supplies used in a hospital's operating room 3. Aircraft depreciation charges of an airline 4. Utility charges that include a minimum-use fee, for a small business 5. Annual business licensing fee paid by a daycare center 6. Truck fuel consumed by a road construction company Required: A. Classify each of these costs as variable, committed fixed, discretionary fixed, or semivariable. B. Briefly describe the behavior of a per-unit variable cost as activity changes. C. What elements are present in a semivariable cost that cause it to behave in a semivariable manner? D. Generally speaking, does management have more flexibility when dealing with committed fixed costs or discretionary fixed costs?
Please answer A. B. C. and D. for all 6!
Thank you in advance.
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