The Drop down menu is for variable or fixed costs.

Nature Ltd produces and sells soaps. Below are the costs occurred in the business. 1. Classify the costs by selecting the property item from the drop-down list (6 marks). Cost Item Amount ($) Classification Coconut oil 4,570 6,220 Salary paid to the full-time workers on the production line Straight-line depreciation on the factory machine 2,350 Insurance expense for the office building 3,380 Electricity expense for the office 1,860 Maintenance expense on the factory machine per 1000 hours of running 3,260