Various costs are associated with running a commercial bakery that supplies local coffee shops. Required: Classify...

  

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Various costs are associated with running a commercial bakery that supplies local coffee shops. Required: Classify each cost as being either variable or fixed with respect to the quantity of baked goods supplied. Also, indicate whether each cost would typically be treated as a direct cost or an indirect cost with respect to the quantity of baked goods supplied. Cost Behaviour To Quantity of Baked Goods Supplied Cost Item 1 Account manager's salary. 2 Rent on building 3. Flour used in the making of croissants. 4 Bakery manager's salary. 5. Wages of bakers who are paid on a piecevwork basis. 6. Depreciation of commercial ovens used in baking. 7 Insurance on the building Various costs are associated with running a commercial bakery that supplies local coffee shops. Required: Classify each cost as being either variable or fixed with respect to the quantity of baked goods supplied. Also, indicate whether each cost would typically be treated as a direct cost or an indirect cost with respect to the quantity of baked goods supplied. Cost Behaviour To Quantity of Baked Goods Supplied Cost Item 1 Account manager's salary. 2 Rent on building 3. Flour used in the making of croissants. 4 Bakery manager's salary. 5. Wages of bakers who are paid on a piecevwork basis. 6. Depreciation of commercial ovens used in baking. 7 Insurance on the building

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1Those costs that vary or change with the number of units produced or sold are referre... View the full answer