Asked by Kaylee Rabon on Jun 30, 2024
Verified
A number of costs and measures of activity are listed below. 
Required:
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.
Fixed Cost
Costs that remain unchanged regardless of the level of production or sales activities within a certain range and period.
Variable Cost
Costs that vary directly with the level of production or service, such as materials and labor.
- Master the concept distinguishing product costs from period costs.
- Discern the impact of production quantity variations on cost behavior and economic implications.
Verified Answer
GD
Gayal DissanayakaJul 01, 2024
Final Answer :
1.Cost of vaccine used at a clinic; Vaccines administered; Variable
2.Building rent at a taco shop; Dollar sales; Fixed
3.Salary of production manager at a snowboard manufacturer; Snowboards produced; Fixed
4.Cost of electricity for production equipment at a snowboard manufacturer; Snowboards produced; Variable
5.Ferry captain's salary on a regularly scheduled passenger ferry; Number of passengers; Fixed
6.Cost of glue used in furniture production; Units produced; Variable
7.Janitorial wages at a snowboard manufacturer; Snowboards produced; Fixed
8.Depreciation on factory building at a snowboard manufacturer; Snowboards produced; Fixed
9.Cost of advertising at a snowboard company; Snowboards sold; Fixed
10.Cost of shipping bags of fertilizer to a customer at a chemical plant; Bags shipped; Variable
2.Building rent at a taco shop; Dollar sales; Fixed
3.Salary of production manager at a snowboard manufacturer; Snowboards produced; Fixed
4.Cost of electricity for production equipment at a snowboard manufacturer; Snowboards produced; Variable
5.Ferry captain's salary on a regularly scheduled passenger ferry; Number of passengers; Fixed
6.Cost of glue used in furniture production; Units produced; Variable
7.Janitorial wages at a snowboard manufacturer; Snowboards produced; Fixed
8.Depreciation on factory building at a snowboard manufacturer; Snowboards produced; Fixed
9.Cost of advertising at a snowboard company; Snowboards sold; Fixed
10.Cost of shipping bags of fertilizer to a customer at a chemical plant; Bags shipped; Variable
Learning Objectives
- Master the concept distinguishing product costs from period costs.
- Discern the impact of production quantity variations on cost behavior and economic implications.