For each of the numbered items, choose the appropriate classifications from the lettered items for a manufacturing company. If in doubt about whether the cost behavior is basically variable or fixed, decide on the basis of whether the total cost will fluctuate substantially over a wide range of volume. Most items have two answers among the following possibilities:

a. Manufacturing costs, direct

b. Manufacturing costs, indirect

c. General and administrative cost

d. Selling cost

e. Fixed cost

f. Variable cost

g. Other (specify)

Examples:

Direct material ………… a, f

President’s salary ……… c, e

Bond interest expense …. e, g

Items for your consideration:

1. Welding supplies

2. Salespersons’ commissions

3. Salespersons’ salaries

4. Supervisory salaries, production control

5. Supervisory salaries, assembly department

6. Supervisory salaries, factory storeroom

7. Factory power for machines

8. Fire loss

9. Sandpaper

10. Company picnic costs

11. Overtime premium, punch press

12. Idle time, assembly

13. Freight out

14. Property taxes

15. Paint for finished products

16. Heat and air conditioning, factory

17. Materials-handling labor, punch press

18. Straight-line depreciation, salespersons’ automobiles