Question

WA Golfing Equipment (WAGE) is a company which manufactures golf clubs, golf carts, golf bags and other golfing equipment. Below are various costs incurred during the year.

Required:

Classify each of the cost items listed below according to cost behaviour. Fixed Cost, Variable cost of Mixed Cost.

	Costs to design a new solar-powered golf cart
	Costs of electricity and other utilities used in the plant
	Depreciation costs (straight-line method) of transport fleet to deliver products to retailers interstate in Australia
	Metal used in the manufacture of golf clubs
	Salary of materials scientists employed to test the feasibility of various metals that could be used in the manufacture of its products.

Answer 1