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DERSON SOUS Many new cost terms have been introduced in this chapter. It will take you some time to learn what each term meus and
DERSON SOUS Many new cost terms have been introduced in this chapter. It will take you some time to learn what each term meus and how to properly classify Corts in an organization. Consider the following example: Porter Company manufactures furniture, including tables, Selected couts are given below 1. The tables are made of wood that costs $100 per table. 2 The tables are assembled by workers, at a wage cost of $40 per table. 3. Workers sembling the tables are supervised by a factory nupervisor who is paid $38,000 per year. 4. Electrical costs are $2 per machine boot. For machine-hours are required to produce a table. 5. The depreciation on the machines oned to make the tables totale s10,000 per year. The machines have no reale value and do not wear out through us. 6. The salary of the president of the company is $100.000 per year. 7. The company spends $250,000 per year to advertise its products 8. Salespersions are paid a commission of $30 for each table sold 9. Instead of producing the tables, the company could rent it factory space for 350,000 per year Required Classify these con conting to the various costed in the chapter Carefully the clanication of each cont. If you don't understand why a particular conti chestfied the way it is, Reet to Cost time. The tums variabel cost a fixed cott Mfu lor of in a Cables produced how cont behave with suput to the number you
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