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For each of the following costs, identify the cost behavior as variable, mixed, or fixed:

1. Wages of assembly line workers _________________
2. President's salary _________________
3. Plant utilities _________________
4. Sales force commissions _________________
5. Shipping costs _________________
6. Factory rent _________________
7. Research and development expenses _________________
8. Property taxes _________________
9. Advertising _________________
10. Supplies used in production _________________

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hyderali230

Answer:

1. Wages of assembly line workers _____Variable ____________

2. President's salary ______Fixed___________

3. Plant utilities _______Mixed__________

4. Sales force commissions _____Variable____________

5. Shipping costs ______Variable___________

6. Factory rent ________Fixed_________

7. Research and development expenses _____* Fixed____________

8. Property taxes _______Fixed__________

9. Advertising _______Fixed__________

10. Supplies used in production _____Variable____________

* If you consider output as number of units sold the R&D is a fixed cost.

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