Classify each cost as being either variable or fixed with respect to the number
ID: 2396595 • Letter: C
Question
Classify each cost as being either variable or fixed with respect to the number of units pr either a period or a product cost cost as being either variable or fixed with respect to the number of units produced and sold. Also classify each cost as Preparing Predicting Cost Financial Cost Item Behavior 1 Hamburger buns in a Wendy's restaurant 2 Advertising by a dental office Apples processed and canned by Del Monte 4 Shipping canned apples from a Del Monte plant to customers ance on a Bausch & Lomb factory producing contact lenser 6. Insurance on IBM's corporate headquarters . Salary of a superviaor overseeing production of printers at Fiewien Packard 0. Commissions paid to automobile salespersons 9 Depreciation of factory lunchroom facilities at a General Electric plant 10 Steering wheels installed in BMWsExplanation / Answer
Cost Item
Cost Behavior
Preparing Financial Statements
1
Hamburger buns in a Wendy's outlet.
Variable
Product cost
2
Advertising by a dental office.
Fixed
Period Cost
3
Apples processed and canned by Del Monte.
Variable
Product cost
4
Shipping canned apples from a DelMonte plant to customers.
Variable
Period Cost
5
Insurance on a Bausch & Lomb factory producing contact lenses.
Fixed
Product cost
6
Insurance on IBM's corporate headquarters.
Fixed
Period Cost
7
Salary of a supervisor overseeing production of printers at Hewlett-Packard.
Fixed
Product cost
8
Commissions paid to Encyclopedia Britannica salespersons.
Variable
Period Cost
9
Depreciation of factory lunchroom facilities at a General Electric plant.
Fixed
Product cost
10
Steering wheels installed in BMWs.
Variable
Product cost
Cost Item
Cost Behavior
Preparing Financial Statements
1
Hamburger buns in a Wendy's outlet.
Variable
Product cost
2
Advertising by a dental office.
Fixed
Period Cost
3
Apples processed and canned by Del Monte.
Variable
Product cost
4
Shipping canned apples from a DelMonte plant to customers.
Variable
Period Cost
5
Insurance on a Bausch & Lomb factory producing contact lenses.
Fixed
Product cost
6
Insurance on IBM's corporate headquarters.
Fixed
Period Cost
7
Salary of a supervisor overseeing production of printers at Hewlett-Packard.
Fixed
Product cost
8
Commissions paid to Encyclopedia Britannica salespersons.
Variable
Period Cost
9
Depreciation of factory lunchroom facilities at a General Electric plant.
Fixed
Product cost
10
Steering wheels installed in BMWs.
Variable
Product cost