Mr. Suncat recently read an article about how important it is to know if your costs are variable, fixed, or mixed costs. to complete the chart, place an X under the appropriate heading(s).

Step 1: For each cost, mark the cost as a product cost or a period cost.

Step 2: If the cost is a product cost, then mark the cost as a variable cost, a fixed cost, or a mixed cost.

	Variable Costs	Fixed Costs	Mixed Costs	Product Costs	Period Costs
Mortgage on the Cake Shop
Insurance on the Cake Shop
Baking ingredients (flour, sugar, etc)
Utilities for the Cake Shop
Office supplies
Wages for the bakers
Salary for his accountant, Mrs. Suncat
Depreciation on office equipment
Cooking spray to grease cake pans
Bakery supervisor wages
Advertising costs
Depreciation of the baking equipment
Baking equipment repairs