The Fremont, California, plant of NUMMI (New United Motor Manufacturing, Inc.), a joint venture of General Motors and Toyota, assembles two types of cars (Corollas and Geo Prisms). A separate assembly line is used for each type of car.
Classify each of the following cost items as
a. Direct or indirect (D or I) costs with respect to the type of car assembled (Corolla or Geo Prism).
b. Variable or fixed (V or F) costs with respect to how the total costs of the plant change as the number of cars assembled changes. (If in doubt, select the cost type based on whether the total costs will change substantially if a large number of cars are assembled.) You will have two answers (D or I, and V or F) for each of the following items:

  • CreatedJuly 31, 2015
  • Files Included
Post your question