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Category > Accounting Posted 18 Dec 2017 My Price 10.00

costs found in various organizations

 

Listed below are costs found in various organizations. For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it would typically be treated as a direct cost or an indirect cost with respect to units of product. Three sample answers are provided for illustration. (Hint: Any benefits given to the workers are added in their wages) (If a cost classification is not application to a cost item, leave the cell blank.)

Manufacturing (Product) Cost
Cost Item Variable or Fixed Selling Cost Administrative Cost Direct Indirect
Ex. Direct labor Variable Yes
Executive salaries Fixed Yes
Factory rent Fixed Yes
1. Property taxes, factory.
2. Boxes used for packaging detergent produced by the company.
3. Salespersons’ commissions.
4. Supervisor’s salary, factory.
5. Depreciation, executive autos.
6. Wages of workers assembling computers.
7. Insurance, finished goods warehouses.
8. Lubricants for production equipment.
9. Advertising costs.
10. Microchips used in producing calculators.
11. Shipping costs on merchandise sold.
12. Magazine subscriptions, factory lunchroom.
13. Lubricants used for machines.
14. Billing costs (handled by sales department).
15. Executive life insurance.
16. Factory heating costs.
17. Fringe benefits, assembly-line workers.
18. Yarn used in sweater production.
19. Wages of receptionist, executive offices.

 
  

Answers

CourseLover
(12)
Status NEW Posted 18 Dec 2017 03:12 PM My Price 10.00

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