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Identify the Following Planned Costs As

Question 57

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:

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1.C 2.D 3.B 4.E 5.B ...

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