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    Budgeting: Classify costs as variable, fixed, mixed; Define

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    Accounting Questions on Budgeting

    A) In today's work force there are those who earn "Salaries", "Wages" and "Base plus Commissions". Identify each distinct applicable cost.

    B) Exercise 13.3 & 13.4 - Cost Classifications: Mark with an X for each type

    COST TYPES VARIABLE COST FIXED COST MIXED COST
    Wages of assembly-line workers
    Depreciation of plant equipment
    Glue and thread
    Outbound shipping costs
    Raw materials handling costs
    Salary of public relations manager
    Production run setup costs
    Plant utilities
    Electricity cost of retail stores
    Research and development expense

    Raw materials
    Staples used to secure packed boxes of product
    Plant janitors' wages
    Order processing clerk's wages
    Advertising expenses
    Production workers' wages
    Production supervisors' salaries
    Salesforce commissions
    Maintenance supplies used
    President's salary
    Electricity cost for office building
    Real estate taxes for factory
    Real estate taxes for office building

    C) Please give a clear definition and examples for each of the following:

    1. Financial Accounting

    2. Committed Costs (CC)

    3. Mixed Costs (MC)

    4. Variable Costs (VC)

    5. Participative Budgeting

    6. A Rolling Budget

    7. Top-down Budgeting

    8. Zero-Based Budgeting

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    https://brainmass.com/business/accounting/budgeting-classify-costs-as-variable-fixed-mixed-define-453608

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    A) In today's work force there are those who earn "Salaries", "Wages" and "Base plus Commissions". Identify each distinct applicable cost.
    Salaries are fixed because they are the same all year regardless of activity.

    Wages are variable because with each hour worked, they rise. As activity changes, up or down, so do wages.
    Base plus commission is a mixed cost with a fixed portion, the base, and a variable portion, the commission.

    B) Exercise 13.3 & 13.4 - Cost Classifications: Mark with an X for each type

    See attached for better formatting

    COST TYPES VARIABLE COST FIXED COST MIXED COST
    Wages of assembly-line workers x
    Depreciation of plant equipment (assume SL) x
    Glue and thread x
    Outbound shipping costs x
    Raw materials handling costs x
    Salary of public relations manager x
    Production run setup costs x
    Plant utilities x
    Electricity cost of retail stores x
    Research and development expense x

    Raw materials x
    Staples used to secure packed boxes of product x
    Plant ...

    Solution Summary

    Your tutorial is 662 words and gives you a paragraph or so for each definition that explains the term and gives you a practical example for each. The classification of direct/indirect is not part of this posting.

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