Purchase Solution

Classification of costs: variable or not

Not what you're looking for?

Ask Custom Question

Stewart Company is attempting to classify costs according to their cost behavior. Data concerning activity and costs are listed below:

January February
Sales in units........... 1,200 1,400

Maintenance........... $ 600 $ 700
Supplies.................. 750 790
Insurance................ 800 800
Utilities.................... 888 1,036
Lubrication.............. 560 576
Advertising.............. 900 1,050
Total....................... $4,498 $4,952

maintenance and supplies
maintenance, supplies, utilities, lubrication and advertising
supplies and advertising
maintenance, utilities and advertising

Purchase this Solution
Solution Summary

The solution explains the rationale for dividing costs between variable or fixed costs.

Solution Preview

Although there isn't much direction about where to go with the question, I ...

Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Motivation

This tests some key elements of major motivation theories.

View More Free Quizzes
Related BrainMass Solutions

  • Cost Classification for Raw Materials

    267644 Cost Classification for Raw Materials For each of the following costs, identify whether the item is a variable or fixed cost, direct or indirect cost, and controllable or uncontrollable cost.

  • Cost classification and cost formula

    Utility bills revealed that the company incurs utility costs of $4,000 per month plus $.20 per pound of sausage produced. 1. Classify each cost item as variable, fixed, or semi-variable. 2.

  • Classification of Manufacturing Costs

    The solution explains the classification of manufacturing costs as direct or indirect and fixed or variable.

  • Netflix and Blockbuster Cost Function Estimation Methods

    Which of Netflix's or Blockbuster's costs might you appropriately estimate using the account classification method? Why? Which of Netflix's or Blockbuster's costs might you appropriately estimate using the high-low method? Why?

  • Cost Classification: variable vs. fixed

    ** This solution is comprised of a detailed explanation to classify cost as variable or fixed.

  • Applying Cost Classifications

    250658 Applying Cost Classifications For each of the following costs, identify whether the item is a variable or fixed cost, direct or indirect cost, and controllable or uncontrollable cost.

  • Classification of Costs as Fixed or Variable Cost

    75514 Classification of Costs as Fixed or Variable Cost Costs can be classified into two categories, fixed and variable costs. These costs behave differently based on the level of sales volumes.

  • What is Management Accounting?

    Classification of cost: Variable cost increase or decrease in direct proportion with the Volume, output or the level of activity. For example Direct material, Direct labour and variable manufacturing or selling overheads etc.

  • Cost Classification-manufacturing,merchandising,service

    Write 'not applicable (N/A)' if a category doesn't apply. Cost Classification The following are costs associated with manufacturing firms, merchandising firms, or service firms: a. Miscellaneous materials used in production b.

View More Related Solutions