Essay Questions
139.Costs that might be incurred by service, merchandising, and manufacturing companies are described below:Required:Classify each cost as variable (V) or fixed (F) with respect to volume or level of activity.Sales commissions paid to sales associates in a department storeShipping cost for AmazonElectricity cost to heat and light a law firmRent on a storeroom used by Turf Pros to store lawn equipmentSalary of a supervisor in a Best Buy distribution centerWages paid to production workers in a General Motors plantInsurance on a Hershey factoryFuel costs for Southwest AirlinesDepreciation of office equipment by Microsoft CorporationDishwashing in an Olive Garden restaurantSalary of the CEO of MicrosoftLubricants used to maintain machinery in a textile factoryCost of metal cans used in a dog food factoryCost of pizza boxes for Domino's PizzaMaterial handling costs for Frito Lay
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