Question

Identify the following planned costs as (a) variable costs, (b) fixed costs, (c) mixed costs, or (d) step costs. For variable costs and mixed costs, indicate the most likely cost driver.
1. Public relations employee compensation to be paid by Intel
2. Crew supervisor in a Lands’ End mail-order house; a new supervisor is added for every 12 workers employed
3. Sales commissions based on revenue dollars; payments to be made to advertising salespersons employed by radio station WCCO, Minneapolis
4. Jet fuel costs of Southwest Airlines
5. Total costs of renting trucks by the city of Nashville; charge is a lump sum of $300 per month plus $.20 per mile
6. Straight-line depreciation on desks in the office of an attorney
7. Advertising costs, a lump sum, planned by ABC, Inc.
8. Rental payment by the Internal Revenue Service on a five-year lease for office space in a private office building
9. Advertising allowance granted to wholesalers by 7-Up Bottling on a per-case basis
10. Compensation of lawyers employed internally by Microsoft
11. Total repairs and maintenance of a university classroom building



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  • CreatedNovember 19, 2014
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