For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed next to it.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 9E: Classify the following costs of activity inputs as variable, fixed, or mixed. Identify the activity...
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  Cost Description Possible Measure of Activity
1. Salary of production manager at a surfboard manufacturer Surfboards produced
2. Cost of solder used in making computers Computers produced
3. Cost of dough used at a pizza shop Pizzas cooked
4. Janitorial wages at a surfboard manufacturer Surfboards produced
5. Salary of the controller at a hospital Number of patients
6. Cost of sales at an electronics store Dollar sales
7. Cost of testing materials used in a medical lab Tests run
8. Cost of heating an electronics store Dollar sales
9. Cost of electricity for production equipment at a surfboard manufacturer Surfboards produced
10. Depreciation on shelving at a book store Dollar sales


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For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed next to it.

 

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