Manufacturing (Product) Cost Variable or Selling Cost Administrative Direct Indirect Cost Item Cost Yes Variable Fixed Fixed Ex. Direct labor Yes Executive salaries Yes Factory rent 1. Property taxes, factory. 2. Boxes used for packaging detergent produced by the company 3. Salespersons' commissions 4. Supervisor's salary, factory. 5. Depreciation, executive autos. 6. Wages of workers assembling computers 7. Insurance, finished goods warehouses. 8. Lubricants for production equipment 9. Advertising costs. 10. Microchips used in producing caliculators 11. Shipping costs on merchandise sold. 12. Magazine subscriptions, factory lunchroom. 13. Thread in a garment factory 14. Executive life insurance. 15. 1 Ink used in textbook production. 16. Fringe benefits, production supervisors 17. Yarn used in sweater production. 18. Wages of receptionist, executive offices