Listed below are costs found in various organizations. For each cost item, indicate whether it would

Listed below are costs found in various organizations. For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it would typically be treated as a direct cost or an indirect cost with respect to units of product.

                                             

	Cost Item	Variable or Fixed	Selling Cost	Administrative Cost	Direct	Indirect
Ex.	Direct labor	Variable			X
	Executive salaries	Fixed		X
	Factory rent	Fixed				X
1.	Depreciation, executive jet	Fixed	No	Yes	No	No
2.	Costs of shipping finished goods to customers	Variable	Yes	No	No	No
3.	Wood used in manufacturing furniture	Variable	No	No	Yes	No
4.	Sales manager’s salary	Fixed	Yes	No	No	No
5.	Electricity used in manufacturing furniture	Variable	No	No	No	Yes
6.	Secretary to the company president	Fixed	No	Yes	No	No
7.	Aerosol attachment placed on a spray can produced by the company	Variable	No	No	Yes	No
8.	Billing costs	Variable	Yes	Yes	No	No
9.	Packing supplies for shipping products overseas	Variable	Yes	No	No	No
10.	Sand used in manufacturing concrete	Variable	No	No	Yes	No
11.	Supervisor’s salary, factory	Fixed	No	No	No	Yes
12.	Executive life insurance	Fixed	No	Yes	No	No
13.	Sales commissions	Variable	Yes	No	No	No
14.	Fringe benefits, assembly line workers	Variable	No	No	Yes	Yes
15.	Advertising costs	Fixed	Yes	No	No	No
16.	Property taxes on finished goods warehouses	Fixed	Yes	No	No	No
17.	Lubricants for production equipment	Variable	No	No	No	Yes