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The following are costs incurred by a shoe manufacturer. Determine whether each one is a fixed cost or a variable cost or has some element
The following are costs incurred by a shoe manufacturer. Determine whether each one is a fixed cost or a variable cost or has some element of both.
- (a)The cost of leather.
- (b)The fee paid to an advertising agency.
- (c)Wear and tear on machinery.
- (e)Electricity for heating and lighting.
- (f)Electricity for running the machines.
- (g)Basic minimum wages agreed with the union.
- (h)Overtime pay.
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