Question 1:

Classify each cost as being variable or fixed with respect to the number of units of products or services sold by the organization by placing an x in the appropriate column.

		Cost Behavior
	Cost (Measure of Activity)	Variable	Fixed
1.	The cost of small glass plates used for lab tests in a hospital (Number of lab tests performed).
2.	A boutique jewelry stores cost of leasing retail space in a mall (Dollar sales).
3.	Top management salaries at FedEx (Total sales).
4.	Electrical costs of running production equipment at a Toyota factory (Number of vehicles produced).
5.	The cost of insuring a dentists office against fire (Patient-visits).
6.	The cost of commissions paid to salespersons at a Honda dealer (Total sales).
7.	The cost of heating the intensive care unit at Swedish Hospital (Patient-days).
8.	The cost of batteries installed in trucks produced at a GM factory (Number of trucks produced).
9.	The salary of a university professor (Number of students taught by the professor).
10.	The costs of cleaning supplies used at a fast-food restaurant to clean the kitchen and dining areas at the end of the day (Number of customers served).	*

*May include a small variable element.