Following are various costs that are found in organizations:
1. Advertising by a dental office.
2. Shipping canned apples from a Del Monte plant to customers.
3. Apples processed and canned by Del Monte Corporation.
4. Insurance on IBM’s corporate headquarters.
5. Commissions paid to Future Shop salespeople.
6. Hamburger buns in a McDonald’s outlet.
7. Depreciation of factory lunchroom facilities at a General Electric plant.
8. Insurance on a Bausch & Lomb factory producing contact lenses.
9. Salary of a supervisor overseeing production of circuit boards at Hewlett-Packard.
10. Steering wheels installed in BMWs.
Required:
Classify each cost as being either variable or fixed with respect to the number of units sold. Also, classify each cost as either a selling and administrative cost or a product cost.
Prepare your answer sheet as shown below: