Essay
Identify the following planned costs as (a) purely variable costs, (b) discretionary fixed costs, (c) committed fixed costs, (d) mixed costs, or (e) step costs.
1. Crew supervisor in a small construction company. A new supervisor is needed for every 12 workers employed.
2. Sales commissions based on sales dollars.
3. Compensation of accountants employed internally by a local manufacturing company.
4. Direct labor.
5. Rental payment on a 30- year lease for office space in a private office building.
6. Repairs made on computers in the office.
Correct Answer:

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1. Step costs
2. Purely variab...View Answer
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Correct Answer:
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2. Purely variab...
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