Essay
Identify the following planned costs as:
(A)purely variable costs
(B)discretionary fixed costs
(C)committed fixed costs
(D)mixed costs
(E)step costs
________ 1.Mortgage payment on factory building.
________ 2.Electricity used in operating equipment.The utility company charges a base rate of $100 per month plus $0.10 per hour.
________ 3.A lump sum amount of advertising costs planned by a local restaurant.
________ 4.Nursing supervisors' salaries (a supervisor is needed for every 10 nurses).
________ 5.Training costs for employees.
________ 6.Crew supervisor in small construction company.A new supervisor is needed for every 12 workers employed.
________ 7.Sales commissions based on amount of sales.
________ 8.Rental payment on a 30-year lease for office space in a private office building.
________ 9.Public relations department at a large consumer-oriented company.
________ 10.Management consulting services acquired to resolve company image Problems.
________ 11.Insurance on factory machines.
________ 12.Salaries of Chief Financial Officer and Chief Executive Officer.
Correct Answer:

Verified
1.C 2.D 3.B 4.E 5.B ...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q12: Discretionary fixed costs have direct relationships with
Q13: In a linear cost function,the cost to
Q14: Committed fixed costs can be altered by
Q16: XXX Company manufactures cardboard boxes.The company is
Q18: The following three data points are available.This
Q19: The fixed costs required to achieve a
Q20: The following data has been assembled for
Q21: The high-low method can be used to
Q22: The cost of a final product may
Q68: When performing an engineering analysis,one must consider