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3 years ago

Classify the following as fixed or variable costs:

Business

1 answer:

adelina 88 [10]3 years ago

6 0

Answer:

Fixed cost: Interest on company-issued bonds, Real estate taxes, Executive salaries, Insurance premiums, Wage payments, Depreciation and obsolescence charges, Sales taxes, Rental payments on leased office machinery

Variable cost: Fuel, Shipping charges, Payments for raw materials,

Explanation:

Fixed costs are costs that are not changed regardless of quantity of goods being produced such as rent for equipment, taxes, depreciation and so on.

Variable costs are costs that change with regard to the quantity of goods being produced such as cost of raw materials, cost of packaging and so on.

Example of fixed and variable costs are:

Fixed cost: Interest on company-issued bonds, Real estate taxes, Executive salaries, Insurance premiums, Wage payments, Depreciation and obsolescence charges, Sales taxes, Rental payments on leased office machinery
Variable cost: Fuel, Shipping charges, Payments for raw materials,

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In the Frankfurt market, Aldi stock closed at €5 per share. On the same day, the euro-U.S. dollar spot exchange rate was €.625/$

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Answer:

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Explanation:

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3 years ago

Galen Company income under variable costing is $1,050,000. Fixed production costs in ending inventory are $300,000 and $250,000

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Answer:

Income under absorption costing = $1,100,000

Explanation:

Marginal and absorption costing are two different methods to deal with fixed production overheads and and decide whether or not they are included in valuation of inventory.

<u>Valuation of inventory</u>

Opening and closing inventory are valued at variable cost under variable costing. Whereas in absorption costing, opening and closing inventory are valued at full production cost (including fixed production overheads).

<u>Reconciling profits reported under two different methods</u>

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3 years ago

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Answer:

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