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Identifying Variable Costs, Committed Fixed Costs, and Discretionary Fixed Costs Required: Classify each of the following costs for a jeans manufacturing company as a variable
Identifying Variable Costs, Committed Fixed Costs, and Discretionary Fixed Costs Required: Classify each of the following costs for a jeans manufacturing company as a variable cost, committed fixed cost, or discretionary fixed cost. a. The cost of buttons. b. The cost to lease warehouse space for completed jeansthe lease contract runs for 2 years at $5,000 per year. Committed fixed cost c. The salary of a summer intern. Discretionary fixed cost d. The cost of landscaping and mowing the grass-the contract with a local mowing company runs from month to month. Variable cost e. Advertising in a national magazine for teenage girls. f. Electricity to run the sewing machines. g. Oil and spare needles for the sewing machines. h. Quality training for employees-typically given for four hours at a time, every six months. i. Food and beverages for the company Fourth of July picnic. j. Natural gas to heat the factory during the winter
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