Question

# Identify and classify all the costs between 1. direct or indirect, 2. product cost or period...

Identify and classify all the costs between

1. direct or indirect,

2. product cost or period cost

3.fixed, mixed, or variable

In a company that manufactures tables

- Administrative Office Rent 20 k a year

- Warehouse rent for 30k a year

- Admin Staff -200k a year

- Outsourced Firm managing sales charging commision of 90 dollars per sale

- Invoicing System outsourced - \$1 per sale

- Admin Office miscelanous expenses of 7k ( stationary ) expected to stay this way for years

- Full time employee at the warehouse - supervising casual staff for 90k a year

- Ware house miseallanous expenses of 7k - expected to stay the same

- Delivery firm charges for delviery of the tables to customers - delivery cost affected by amount of units delviered

- Material costs for the tables ( timber , Varnish , Bolts etc)

- Manufacturing staff to make the tables 40 dollars an hour

1. Administrative Rent - Indirect Cost - Period Cost - Fixed Cost

2. Warehouse Rent - Indirect Cost - Period Cost - Fixed Cost

3. Admin Staff - Indirect Cost - Period Cost - Fixed Cost

4. Outsourced firm sales commission - Indirect Cost - Period Cost - Variable Cost

5. Invoicing system - Indirect Cost - Period Cost - Variable Cost

6. Admin office miscellaneous expenses - Indirect Cost - Period Cost - Fixed Cost

7. Full time employee at warehouse - Indirect Cost - Period Cost - Fixed Cost

8. Warehouse miscellaneous expenses - Indirect Cost - Period Cost - Fixed Cost

9. Delivery Firm Charges - Indirect Cost - Period Cost - Variable Cost

10. Material Cost - Direct Cost - Product Cost - Variable Cost

11. Manufacturing Staff - Direct Cost - Product Cost - Variable Cost

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