Chapter $1$ HW

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Listed below are costs found in various organizations.

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$\backslash$table$[[$eBook$],[$Print$],[$References$]]$

For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with resflect to units of product. Three sample answers are provided for illustration

$\backslash$table$[[$Cost Item,$\backslash$table$[[$Variable or$],[$Fixed$]],$Selling Cost,$\backslash$table$[[$Administrative$],[$Cost$]],\backslash$table$[[$Manufacturing$],[($Product$)$ Cost$],[$Direct$]],\backslash$table$[[$Manufact$],[($Product$)],[$Indirec$]]],[$Example: Direct labor,Variable,,,Yes,$],[$Example: Executive salaries,Fixed,,Yes,,$],[$Example: Factory rent,Fixed,,,,Yes$],[1.$ Property taxes, factory.,Fixed,,,,Yes$],[2.$ Boxes used for packaging detergent produced by the company.,Variable,Yes,,Yes,$],[3.$ Salespersons' commissions.,Variable,Yes,,,$],[4.$ Supervisor's salary, factory.,Fixed,,,Yes,$],[5.$ Depreciation, executive autos.,Fixed,,,,$],[6.$ Wages of workers assembling computers.,Fixed,,Yes,,$],[7.$ Insurance, finished goods warehouses.,,,,,$],[8.$ Lubricants for production equipment.,,,,,$]]$

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$\backslash$table$[[$Example: Direct labor,Variable,,,Yes,$],[$Example: Executive salaries,Fixed,,Yes,,$],[$Example: Factory rent,Fixed,,,,Yes$],[1.$ Property taxes, factory.,Fixed,,Yes,,Yes$],[2.$ Boxes used for packaging detergent produced by the company.,Variable,Yes,,Yes,$],[3.$ Salespersons' commissions.,Variable,Yes,,,Yes$],[4.$ Supervisor's salary, factory.,Fixed,,,,Yes$],[5.$ Depreciation, executive autos.,Fixed,,Yes,,Yes$],[6.$ Wages of workers assembling computers.,Variable,,,Yes,$],[7.$ Insurance, finished goods warehouses.,Fixed,,Yes,,Yes$],[8.$ Lubricants for production equipment.,Fixed,,,,Yes$],[9.$ Advertising costs.,Variable,Yes,,,Yes$],[10.$ Microchips used in producing calculators.,,,,,$],[11.$ Shipping costs on merchandise sold.,,,,,$],[12.$ Magazine subscriptions, factory lunchroom.,,,,,$],[13.$ Thread in a garment factory.,,,,,$],[14.$ Executive life insurance.,,,,,$],[15.$ Ink used in textbook production.,,,,,$],[16.$ Fringe benefits, materials handling workers.,,,,,$],[17.$ Yarn used in sweater production.,,,,,$],[18.$ Wages of receptionist, executive offices.,,,,,$]]$

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ror eacn cost item, inaicate wnetner it wouia de variadie or tixea witn respect to the number or units proaucea ana soia; and tnen whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product. Three sample answers are provided for illustration.