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Identify the Following Planned Costs as (A) Purely Variable Costs

Question 96

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. Straight- line depreciation on office furniture.
2. Electricity used in operating equipment.
3. A lump sum amount of advertising costs planned by a local restaurant.
4. Nursing supervisors' salaries (a supervisor is needed for each 10 nursing personnel).
5. Repairs made on computers.
6. Training costs for employees.

Correct Answer:

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1. Committed fixed costs
2. Mi...

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