You have applied for a casual accounting job in a small manufacturing company during the term break. The companys financial accountant has invited you for an interview and presented you with a list of cost items. Your task is to classify the following list of costs on the basis of the options given below. The response given by interviewees will be used to assess suitability for the job and to evaluate their knowledge of cost concepts and classifications.

List of costs:

1.	Wood needed for manufacturing furniture.
2.	Sales commissions paid to sales agents during the month.
3.	Depreciation on equipment used by the sales agents.
4.	Hourly wages of cleaners that clean the whole company on daily basis.
5.	Monthly cost of utilities and insurance for the factory.

Required: Classify the above list of costs using the following three methods. Please use the table below to write your answers. (5 Marks)

(i) The item is classified as: Manufacturing or Non-manufacturing

(ii) Type of cost is: R&D cost, Design, Supply, Direct material, Direct labour, Manufacturing overhead, Marketing, Distribution, or Customer service

(iii) The behavior of cost is: Variable cost, Mixed cost or Fixed cost

Cost item	(i)	(ii)	(iii)
Example: Glue	Manufacturing	Manufacturing Overhead (MOH)	Variable