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Costs That Might Be Incurred by Service, Merchandising, and Manufacturing

Question 112

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Costs that might be incurred by service, merchandising, and manufacturing companies are described below:
Sales commissions paid to sales associates in a department store
Shipping cost for Amazon
Electricity cost to heat and light a law firm
Rent on a storeroom used by Turf Pros to store lawn equipment
Salary of a supervisor in a Best Buy distribution center
Wages paid to production workers in a General Motors plant
Insurance on a Hershey factory
Fuel costs for Southwest Airlines
Depreciation of office equipment by Microsoft Corporation
Dishwashing in an Olive Garden restaurant
Salary of the CEO of Microsoft
Lubricants used to maintain machinery in a textile factory
Cost of metal cans used in a dog food factory
Cost of pizza boxes for Domino's Pizza
Material handling costs for Frito Lay
Required:
Classify each cost as variable (V) or fixed (F) with respect to volume or level of activity.

Correct Answer:

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Sales commissions paid to sales associat...

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