Purchase Solution

Classifying Manufacturing Costs As Fixed or Variable

Not what you're looking for?

Ask Custom Question

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)
6. Supplies
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

Purchase this Solution
Solution Summary

Given a long list of common production-related costs, this solution classifies each as fixed or variable.

Solution Preview

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: ...

Purchase this Solution
Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

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.

View More Free Quizzes
Related BrainMass Solutions

  • Managerial Accounting Practices/Costing

    After reviewing some of the prior accountant's work, you are not sure that the proper attention was paid to classifying costs as fixed, variable, or mixed.

  • Cost Classification-manufacturing,merchandising,service

    Windshields used for a car manufacturer product, variable, manufacturing overhead This solution is comprised of classifying the costs as (1) product or period; (2)variable or fixed; and (3) for those that are product costs, as direct materials, direct

  • Classify each cost as a Vriable cost, a Fixed cost, or a Mix

    /c5HREAQj0g7nIAn%20introduction%20to%20cost%20terms%20a Response is attached, The response helps in classifying each cost as a variable cost, a Fixed cost, or a Mixed.

  • Classifying Costs as Variable, Fixed or Mixed

    414670 Classifying Costs as Variable, Fixed or Mixed With respect to the production and sale of these toy helicopters, classify each cost as either variable, fixed, or mixed. 1. Oil used in manufacturing equipment 2.

  • Classifying Cost Items

    This solution illustrates how to classify costs as direct, indirect and as fixed or variable.

  • Multiple choice

    variable and fixed costs These costs are not directly traceable but can be variable or fixed 5. d. may include either direct or indirect costs If traceable to the cost object then these are direct else indirect The solution explains some multiple

  • This posting addresses types of costs.

    The solution provides the exact answers for classifying costs incurred manufacturing bicycles as variable (V), fixed (F), or mixed (M) cost (using number of units produced as the activity measure).

  • Classification of costs and Cost-volume-profit analysis

    Windshields used for a car manufacturer Classify the costs as (1) product or period; (2) variable or fixed; and (3) for those that are product costs, as direct materials, direct labor, or manufacturing overhead.

  • Accounting: Multiple choice questions.

    Cost behavior refers to: how costs react to a change in the level of activity whether a cost is incurred in a manufacturing, merchandising, or service company classifying costs as either product or period costs whether a particular

  • NeatBeat Production of Drums: Classify Costs

    Classify each cost and its amount as (a) either fixed or variable and (b) either product or period. (The first cost is completed as an example) 2. Compute the manufacturing cost per drum set. Analysis Component 3.

View More Related Solutions