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Lorenzo operates a car wash. Incoming cars are put on an automatic conveyor belt. Cars are washed as the conveyor belt carries them from the
Lorenzo operates a car wash. Incoming cars are put on an automatic conveyor belt. Cars are washed as the conveyor belt carries them from the start station to the finish station. After a car moves off the conveyor belt, it is dried manually. Workers then clean and vacuum the inside of the car and are paid per car. Depreciation is calculated on a straight line basis. Lorenzo washed cars in and reported the following costs: Account description Costs Car wash labour R Soap, cloth and supplies R Water R Electric power to move the conveyor belt R Depreciation R Salaries R Required: Classify each account as variable or fixed with respect to the number of cars washed. Give a brief explanation for your answer. Suppose Lorenzo washed cars in Use the cost classification you developed in above to estimate Lorenzos total costs in
Lorenzo operates a car wash. Incoming cars are put on an automatic conveyor belt. Cars are washed as the conveyor belt carries them from the start station to the finish station. After a car moves off the conveyor belt, it is dried manually. Workers then clean and vacuum the inside of the car and are paid per car. Depreciation is calculated on a straight line basis.
Lorenzo washed cars in and reported the following costs:
Account description Costs
Car wash labour R
Soap, cloth and supplies R
Water R
Electric power to move the conveyor belt R
Depreciation R
Salaries R
Required:
Classify each account as variable or fixed with respect to the number of cars washed. Give a brief explanation for your answer.
Suppose Lorenzo washed cars in Use the cost classification you developed in above to estimate Lorenzos total costs in
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