Question

Classify each cost as being either variable or fixed with respect to the number of units...

Classify each cost as being either variable or fixed with respect to the number of units produced and sold. Also classify each cost as either a period or a product cost. Cost Item Variable or Fixed? Product or Period? 1. Salary of a supervisor overseeing production of printers at Dell. 2. Commissions paid to automobile salespersons. 3. Hamburger buns in a Wendy’s restaurant. 4. Insurance on IBM’s corporate headquarters. 5. Advertising by a dental office. 6. Insurance on a Bausch & Lomb factory producing contact lenses. 7. Depreciation of factory lunchroom facilities at a General Electric plant. 8. Steering wheels installed in BMWs. 9. Shipping desks via UPS by a manufacturer to its customers. 10. Apples processed and canned by Del Monte.

Homework Answers

Answer #1

1. Salary of a supervisor overseeing production of printers at Dell.
Fixed, Product

2. Commissions paid to automobile salespersons.
Variable, Period

3. Hamburger buns in a Wendy’s restaurant.
Variable, Product

4. Insurance on IBM’s corporate headquarters.
Fixed, Period

5. Advertising by a dental office.
Fixed, Period

6. Insurance on a Bausch & Lomb factory producing contact lenses.
Fixed, Product

7. Depreciation of factory lunchroom facilities at a General Electric plant.
Fixed, Product

8. Steering wheels installed in BMWs.
Variable, Product

9. Shipping desks via UPS by a manufacturer to its customers.
Variable, Period

10. Apples processed and canned by Del Monte.
Variable, Product

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