Question: Below are a number of costs that are incurred in

Below are a number of costs that are incurred in a variety of organization.
Required:
Classify each cost as being variable or fixed with respect to the number of units of product or services sold by the organization by placing an X in the appropriate column.
Cost Behavoir
Cost Item Variable Fixed
1. X-ray film used in the radiology lab at Virginia Mason Hospital in Seattle.....
2. The costs of advertising a Madonna rock concert in New York City......
3. Rental cost of a McDonald’s restaurant building in Hong Kong..........
4. The electrical costs of running a roller coaster at Magic Mountain.......
5. Property taxes on your local cinema...................
6. Commissions paid to salespersons at Nordstrom..............
7. Property insurance on a Coca-Cola bottling plant...............
8. The costs of synthetic materials used to make Nike running shoes.......
9. The costs of shipping Panasonic televisions to retail stores............
10. The cost of leasing an ultra-scan diagnostic machine at the American
Hospital in Paris..........................

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  • CreatedMarch 15, 2011
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