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# Cost classification

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Below are cost and measures of activity in a variety of organizations. Classify each cost as variable or fixed with respect to the indicated measure of activity by listing out the numbered item and a "V" for variable or an "F" for fixed cost. For example 1F, 2F etc.
Below are cost and measures of activity in a variety of organizations. Classify each cost as variable or fixed with respect to the indicated measure of activity by listing out the numbered item and a "V" for variable or an "F" for fixed cost. For example 1F, 2F etc.
# Cost Measure of Activity
1. The cost of x-ray film used in the radiation lab Number of x-rays Taken
at Virginia Manson Hospital in Seattle

2. The cost of advertising for a rock concert in NY city Number of rock concert tickets sold

3. The cost of rental space for a McDonald's Total sales at the restaurant
Restaurant in Hong Kong
4. The electrical cost of running a roller coaster at Number of times the roller coaster is
Magic Mountain run
5. Property taxes paid by your local cinema theaters Number of tickets sold
6. The cost of sales commissions paid to salespersons Total sales at the store
at a Nordstrom store
7. Property insurance on a Coca-Cola bottling plant Number of cases of bottles produced
8. The cost of synthetic materials used to make a Number of shoes of that model
particular brand of running shoe produced
9. The cost of shipping Panasonic televisions to The number of televisions sold
retail stores
10. The cost of leasing an ultra scan diagnostic machine The number of patients scanned
At the American Hospital in Paris with the machine

#### Solution Preview

A cost is variable if it changes with activity else it is a fixed cost
1. Variable as it would change with number of x rays
2. Fixed as it would not change with ...

#### Solution Summary

The solution explains cost classification in terms of fixed or variable

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