Fixed cost 4.2 Action Required: The following table shows various costs incurred by a manufacturing company: Depreciation Cost Cost of shipping finished goods to customers Wood used in manufacturing furniture Manager's salary Electricity used in manufacturing furniture Packing supplies for shipping products Sand used in manufacturing concrete Supervisor's salary Advertising costs Executive's life insurance Variable cost 4.3 Test your Knowledge (Question): Answer with a tick mark or write in words which is a fixed cost, and which one is a variable cost. Explain the concept of value and its implications for managing the supply chain. Explain how logistic costs can be managed for better value creation. 4.2 Action Required: The following table shows various costs incurred by a manufacturing company: Cost Depreciation Cost of shipping finished goods to customers Wood used in manufacturing furniture Manager's salary Electricity used in manufacturing furniture Packing supplies for shipping products Sand used in manufacturing concrete Supervisor's salary Advertising costs Executive's life insurance Variable Fixed cost cost 4.3 Test your Knowledge (Question): Answer with a tick mark or write in words which is a fixed cost, and which one is a variable cost.