Cost Item Example: Direct labor Example: Executive salaries Example: Factory rent 1. Property taxes, factory. 2. Boxes u

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Cost Item Example Direct Labor Example Executive Salaries Example Factory Rent 1 Property Taxes Factory 2 Boxes U 1 (98.88 KiB) Viewed 59 times

Cost Item Example: Direct labor Example: Executive salaries Example: Factory rent 1. Property taxes, factory. 2. Boxes used for packaging detergent produced by the company. 3. Salespersons' commissions. 4. Supervisor's salary, factory. 5. Depreciation, executive autos. 6. Wages of workers assembling computers. 7. Insurance, finished goods warehouses. 8. Lubricants for production equipment. 9. Advertising costs. 10. Microchips used in producing calculators. 11. Shipping costs on merchandise sold. 12. Magazine subscriptions, factory lunchroom. 13. Thread in a garment factory. 14. Executive life insurance. 15. Ink used in textbook production. 16. Fringe benefits, materials handling workers. 17. Yarn used in sweater production. 18. Wages of receptionist, executive offices. Variable or Fixed Selling Cost Variable Fixed Fixed Fixed ✓ Variable ✔ Variable ✔✔ ✔ Fixed Fixed Variable ✔ Yes X ✔✓ Fixed ✓ Variable ✔ Fixed ✓ Variable ✔ Variable ✔ Fixed ✓ Variable ✓ Yes Fixed ✔ Yes Variable ✔ Variable ✔ Variable ✔ Fixed ✓ Yes ✓ Yes Yes > 3 XX Administrative Cost Yes Yes Yes ✓ ✓ Manufacturing (Product) Cost Direct Yes Yes Yes Yes Yes Yes Yes Yes ✔ ✓ X ✔ (** Manufacturing (Product) Cost InDirect Yes Yes Yes Yes Yes ✔ X ✔