Question

Identify the costs as variable, fixed, or mixed. 1. Wood used in the production of furniture. select a type of costs 2. Fuel used in delivery trucks. select a type of costs 3. Straight-line depreciation on factory building. select a type of costs 4. Screws used in the production of furniture. select a type of costs 5. Sales staff salaries. select a type of costs 6. Sales commissions. select a type of costs 7. Property taxes. select a type of costs 8. Insurance on buildings. select a type of costs 9. Hourly wages of furniture craftsmen. select a type of costs 10. Salaries of factory supervisors. select a type of costs 11. Utilities expense. select a type of costs 12. Telephone bill. select a type of costs

Answer 1

Answer:

Refer explanation

Explanation:

Fixed cost is a cost that does not change with changes in output.

Variable cost is a cost that changes with the level of activity or output.

Mixed cost is a type of cost that is semi-variable and semi-fixed.

1. Wood used in the production of furniture - Variable

2. Fuel used in delivery trucks - Variable

3. Straight-line depreciation on factory building - Fixed

4. Screws used in the production of furniture - Variable

5. Sales staff salaries - Fixed

6. Sales commissions - Variable

7. Property taxes - Fixed

8. Insurance on buildings - Fixed

9. Hourly wages of furniture craftsmen - Fixed

10. Salaries of factory supervisors - Fixed

11. Utilities expense - Mixed

12. Telephone bill - Mixed