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    Fixed and variable costs

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    Below - please state which are Fixed and variable costs:

    President's salary
    User's guides
    Property tax on general offices
    Wages of telephone order assistants
    Shipping expenses
    Sales commissions
    Straight-line depreciation on manufacturing equipment
    Computer disks
    Salaries of customer support personnel
    Salaries of software developers
    Packaging costs

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    Solution Preview

    We need to classify costs as fixed or variable in relation to units sold. If the cost would not be affected by the units sold then we would classify it as fixed else it would be a variable ...

    Solution Summary

    The solution identifies the given costs as fixed or variable.