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Sunshine Press Pty Ltd produces a number of products, including a weekly newspaper called The Sunshine Times, customised business cards and printed stationery. In preparing

Sunshine Press Pty Ltd produces a number of products, including a weekly newspaper called The Sunshine Times, customised business cards and printed stationery. In preparing next years budget, the accountant is analysing the behaviour of the companys major costs, listed below, and considering possible cost drivers.

(a) The cost of paper used in the Times. Each edition comprises 40 pages.

(b) The cost of the card used for business cards.

(c) The salary of the editor of the Times.

(d) Depreciation of the printing presses, which is calculated based on units of production.

(e) The cost of the lease on the company building.

(f) The cost of setting up the printing presses.

(g) The cost of leasing and running the trucks that deliver the Times to wholesale customers each week. Business cards and printed stationery are picked up by customers.

(h) The salary of the company manager.

(i) The cost of the graphic artist who designs customers business cards. This person is not an employee and is paid a set amount per card design.

(j) The cost of an external marketing consultant who obtains advertising for the Times. This person is paid a percentage of advertising revenue.

Required:

Classify each of the above costs as fixed, variable or semi-variable, and indicate an appropriate cost driver.

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