Fundamentals of Engineering Economics 3rd Edition by Chan Park

Exercise 3

Some commonly known costs associated with manufacturing operations are listed below:
(a) Paint shop superintendent's salary
(b) Labor costs in assembling a product
(c) Rent on a factory building
(d) Radio-frequency identification (RFID) units embedded in the final product during shipping
(e) Depreciation on machinery
(f) Lubricants used for machines
(g) CPU chips used in notebook production
(h) Paint used in automobile production
(i) Janitorial and custodial salaries
(j) Coffee beans used in packaging roasted coffee
(k) Sugar used in icecream production
(l) Electricity for operation of machines
(m) Electricity for heating and cooling the factory building
(n) Glue used in electronic board production
Classify each cost as being either variable or fixed with respect to volume or level of activity.