Question

сиптепсиссер тоБез Classify each cost as variable, fixed, or mixed. Insurance on the buildings .. Property tax bill 1. Sales commission . Nails used to produce furniture 6. Fuel needed to operate the machinery 6. Hourly wages of the assembly-line workers 1. Rental of U-Haul charged based on daily rate plus 1. Depreciation on the building Rent paid for office space 5. Maintenance costs of delivery vans e Textbook and Media

Answer 1

1. Insurance On Building - Fixed Cost

Reason ; It does not vary with Production

2.Property Tax Bill - Fixed Cost

Reason ; It does not vary with Production

3.Sales Commission - Variable Cost

Reason : It changes as the sales turnover changes.

4. Nails Used to produce Furniture - Fixed Cost

Reason : It is relating to a fixed assets. But if furniture is good to the oraganisation it would be variable cost.

5. Fuel Used to operate Machinery - Variable Cost

Reason : It Changes with production or run time of machinery.

6. Hourly wages of assembly line workers - Variable Cost

Reason : Wages are to be paid on number of hours worked which is based on production.

7. Rental Of U-Haul charges based on daily rate plus - Mixed Cost

Reason : This cost is based on both fixed and variable units

8. Depreciation on building - Fixed Cost

Reason : It does not vary with production

9. Rent paid for Office Space - Fixed Cost

Reason : It does not depend on production. It is fixed.

10. Maintainance Costs of Delivery Vans - Mixed Costs

Reason : It depends on both production and also fixed costs.