Explore BrainMass

Is it a Variable or a Fixed Cost?

I need help with classifying weather are not these items are variable or fixed cost, direct or indirect cost, are controllable or uncontrollable cost.

1.Raw materials.
2.Staples used to secure packed boxes of the product.
3.Plant janitor's wages.
4.Order processing clerk's wages.
5.Advertising expenses.
6.Production worker's wages.
7.Production supervisor's salaries.
8.Sales force commissions.
9.Maintenance supplies used.
10.President's salary.
11.Electricity cost for the office building.
12.Real estate taxes for the plant.
13.Production-run setup costs.
14.Depreciation of plant equipment.
15.Outbound shipping costs.

© BrainMass Inc. brainmass.com July 17, 2018, 11:56 am ad1c9bdddf

Solution Preview

Fixed costs are those which doesn't change with the change in the level of operations. Variable costs change with the change in level of operations. Fixed costs can be rent, monthly salary, production expenses, insurance, annual maintenance costs. Direct costs are the costs which are proximately related to the costs and the indirect costs are the costs which are common to the business. Controllable costs are the costs "which are subject to the discretion of a manager and, ...