Chapter 2 - Cost Classifications Expo Corporation makes white board markers in several colors. Use the following chart to classify the costs Expo incurs to run its business. Cost Item Operating Cost Product Cost Var or Fixed Selling Gen Direct Indirect and Mkting Admin and DM DL MOH 1. Depreciation on the executive jet 2. Costs of shipping finished goods to customers 3. Cleaning supplies used in the factory 4. Sales manager's salary 5. Electricity used in the manufacturing process 6. Secretary to the company president 7. Cap placed on the markers produced by the company 8. Billing and collection costs 9. Packing supplies for shipping products overseas 10. Ink used in manufacturing markers 11. Factory supervisor's salary 12. Accounting Dept, supervisor's salary 13. Life insurance for CEO 14. Sales commissions on markers sold 15. Advertising costs 16. Property taxes on factory 17. Lubricants used for production equipment 18. Health insurance premiums for factory personnel 19. Wages paid to assembly line workers in the factory *A cost object must be specified before determining whether a cost is fixed or variable. Let the markers produced in the factory be the cost object. For most questions, the number of markers produced is the appropriate volume level. The volume of markers sold is appropriate for a couple of questions, such as sales commissions