Which of the following costs of productive output are usually variable or fixed?
1. Packing materials for stereo components
2. Real estate taxes
3. Gasoline for a delivery truck
4. Property Insurance
5. Depreciation expense of buildings (calculated with the straight line method)
7. Indirect materials
8. Bottles used to package liquids
9. License fees for company cars
10. Wiring used in radios
11. Machine helper's wages
12. Wood used in bookcases
13. City operating license
14. Machine depreciation based on machine hours used
15. Machine operator's hourly wages
16. Cost of required outside inspection of each unit produced
Remembering that fixed costs remain the same over the relevant range regardless of the level of activity and that variable costs change over the relevant range based upon the level of activity, here are my responses:
1. Packing materials for stereo components: ...
Given a long list of common production-related costs, this solution classifies each as fixed or variable.