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eBook 3-1: Basics of Cost Behavior Exercise 3.9 Variable, Fixed, and Mixed Costs Classify the following costs of activity inputs as variable, fixed, or mixed.

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3-1: Basics of Cost Behavior

Exercise 3.9 Variable, Fixed, and Mixed Costs

Classify the following costs of activity inputs as variable, fixed, or mixed. Identify the activity and the associated activity driver that allow you to define the cost behavior. For example, assume that the resource input is cloth in a shirt." The activity would be "sewing shirts," the cost behavior "variable," and the activity driver "units produced." Prepare your answers in the following format:

Activity Cost Behavior Activity Driver
a. Flu vaccine - Select your answer -AssemblingDelivering ordersFiling claimsMaintaining equipmentMoving materialsPurchasing goodsSelling goodsSelling productsSewingStoring goodsTransporting clientsVaccinating patientsX-raying patientsItem 1 - Select your answer -VariableFixedMixedItem 2 - Select your answer -Machine hoursMaintenance hoursMiles drivenNumber of circularsNumber of claimsNumber of flu shotsNumber of movesNumber of ordersNumber of X-raysSquare feetUnits producedUnits soldItem 3
b. Salaries, equipment, and materials used for moving materials in a factory - Select your answer -AssemblingDelivering ordersFiling claimsMaintaining equipmentMoving materialsPurchasing goodsSelling goodsSelling productsSewingStoring goodsTransporting clientsVaccinating patientsX-raying patientsItem 4 - Select your answer -VariableFixedMixedItem 5 - Select your answer -Machine hoursMaintenance hoursMiles drivenNumber of circularsNumber of claimsNumber of flu shotsNumber of movesNumber of ordersNumber of X-raysSquare feetUnits producedUnits soldItem 6
c. Forms used to file insurance claims - Select your answer -AssemblingDelivering ordersFiling claimsMaintaining equipmentMoving materialsPurchasing goodsSelling goodsSelling productsSewingStoring goodsTransporting clientsVaccinating patientsX-raying patientsItem 7 - Select your answer -VariableFixedMixedItem 8 - Select your answer -Machine hoursMaintenance hoursMiles drivenNumber of circularsNumber of claimsNumber of flu shotsNumber of movesNumber of ordersNumber of X-raysSquare feetUnits producedUnits soldItem 9
d. Salaries, forms, and postage associated with purchasing - Select your answer -AssemblingDelivering ordersFiling claimsMaintaining equipmentMoving materialsPurchasing goodsSelling goodsSelling productsSewingStoring goodsTransporting clientsVaccinating patientsX-raying patientsItem 10 - Select your answer -VariableFixedMixedItem 11 - Select your answer -Machine hoursMaintenance hoursMiles drivenNumber of circularsNumber of claimsNumber of flu shotsNumber of movesNumber of ordersNumber of X-raysSquare feetUnits producedUnits soldItem 12
e. Printing and postage for advertising circulars - Select your answer -AssemblingDelivering ordersFiling claimsMaintaining equipmentMoving materialsPurchasing goodsSelling goodsSelling productsSewingStoring goodsTransporting clientsVaccinating patientsX-raying patientsItem 13 - Select your answer -VariableFixedMixedItem 14 - Select your answer -Machine hoursMaintenance hoursMiles drivenNumber of circularsNumber of claimsNumber of flu shotsNumber of movesNumber of ordersNumber of X-raysSquare feetUnits producedUnits soldItem 15
f. Equipment, labor, and parts used to repair and maintain production equipment - Select your answer -AssemblingDelivering ordersFiling claimsMaintaining equipmentMoving materialsPurchasing goodsSelling goodsSelling productsSewingStoring goodsTransporting clientsVaccinating patientsX-raying patientsItem 16 - Select your answer -VariableFixedMixedItem 17 - Select your answer -Machine hoursMaintenance hoursMiles drivenNumber of circularsNumber of claimsNumber of flu shotsNumber of movesNumber of ordersNumber of X-raysSquare feetUnits producedUnits soldItem 18
g. Power to operate sewing machines in a clothing factory - Select your answer -AssemblingDelivering ordersFiling claimsMaintaining equipmentMoving materialsPurchasing goodsSelling goodsSelling productsSewingStoring goodsTransporting clientsVaccinating patientsX-raying patientsItem 19 - Select your answer -VariableFixedMixedItem 20 - Select your answer -Machine hoursMaintenance hoursMiles drivenNumber of circularsNumber of claimsNumber of flu shotsNumber of movesNumber of ordersNumber of X-raysSquare feetUnits producedUnits soldItem 21
h. Wooden cabinets enclosing audio speakers - Select your answer -AssemblingDelivering ordersFiling claimsMaintaining equipmentMoving materialsPurchasing goodsSelling goodsSelling productsSewingStoring goodsTransporting clientsVaccinating patientsX-raying patientsItem 22 - Select your answer -VariableFixedMixedItem 23 - Select your answer -Machine hoursMaintenance hoursMiles drivenNumber of circularsNumber of claimsNumber of flu shotsNumber of movesNumber of ordersNumber of X-raysSquare feetUnits producedUnits soldItem 24
i. Advertising - Select your answer -AssemblingDelivering ordersFiling claimsMaintaining equipmentMoving materialsPurchasing goodsSelling goodsSelling productsSewingStoring goodsTransporting clientsVaccinating patientsX-raying patientsItem 25 - Select your answer -VariableFixedMixedItem 26 - Select your answer -Machine hoursMaintenance hoursMiles drivenNumber of circularsNumber of claimsNumber of flu shotsNumber of movesNumber of ordersNumber of X-raysSquare feetUnits producedUnits soldItem 27
j. Sales commissions - Select your answer -AssemblingDelivering ordersFiling claimsMaintaining equipmentMoving materialsPurchasing goodsSelling goodsSelling productsSewingStoring goodsTransporting clientsVaccinating patientsX-raying patientsItem 28 - Select your answer -VariableFixedMixedItem 29 - Select your answer -Machine hoursMaintenance hoursMiles drivenNumber of circularsNumber of claimsNumber of flu shotsNumber of movesNumber of ordersNumber of X-raysSquare feetUnits producedUnits soldItem 30
k. Fuel for a delivery van -Select your answer-AssemblingDelivering ordersFiling claimsMaintaining equipmentMoving materialsMileagePurchasing goodsSelling goodsSelling productsSewingStoring goodsTransporting clientsVaccinating patientsX-raying patientsItem 31 - Select your answer -VariableFixedMixedItem 32 - Select your answer -Machine hoursMaintenance hoursMiles drivenMileageNumber of circularsNumber of claimsNumber of flu shotsNumber of movesNumber of ordersNumber of X-raysSquare feetUnits producedUnits soldItem 33
l. Depreciation on a warehouse - Select your answer -AssemblingDelivering ordersFiling claimsMaintaining equipmentMoving materialsPurchasing goodsSelling goodsSelling productsSewingStoring goodsTransporting clientsVaccinating patientsX-raying patientsItem 34 - Select your answer -VariableFixedMixedItem 35 - Select your answer -Machine hoursMaintenance hoursMiles drivenNumber of circularsNumber of claimsNumber of flu shotsNumber of movesNumber of ordersNumber of X-raysSquare feetUnits producedUnits soldItem 36
m. Depreciation on a forklift used to move partially completed goods - Select your answer -AssemblingDelivering ordersFiling claimsMaintaining equipmentMoving materialsPurchasing goodsSelling goodsSelling productsSewingStoring goodsTransporting clientsVaccinating patientsX-raying patientsItem 37 - Select your answer -VariableFixedMixedItem 38 - Select your answer -Machine hoursMaintenance hoursMiles drivenNumber of circularsNumber of claimsNumber of flu shotsNumber of movesNumber of ordersNumber of X-raysSquare feetUnits producedUnits soldItem 39
n. X-ray film used in the radiology department of a hospital - Select your answer -AssemblingDelivering ordersFiling claimsMaintaining equipmentMoving materialsPurchasing goodsSelling goodsSelling productsSewingStoring goodsTransporting clientsVaccinating patientsX-raying patientsItem 40 - Select your answer -VariableFixedMixedItem 41 - Select your answer -Machine hoursMaintenance hoursMiles drivenNumber of circularsNumber of claimsNumber of flu shotsNumber of movesNumber of ordersNumber of X-raysSquare feetUnits producedUnits soldItem 42
o. Rental car provided for a client - Select your answer -AssemblingDelivering ordersFiling claimsMaintaining equipmentMoving materialsPurchasing goodsSelling goodsSelling productsSewingStoring goodsTransporting clientsVaccinating patientsX-raying patientsItem 43 - Select your answer -VariableFixedMixedItem 44 - Select your answer -Machine hoursMaintenance hoursMiles drivenNumber of circularsNumber of claimsNumber of flu shotsNumber of movesNumber of ordersNumber of X-raysSquare feetUnits producedUnits soldItem 45

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