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6 May 2018

EXERCISE 2-15 Classification of Costs as Variable or Fixed and as Product or Period [LO2-3, L02-4] Below are listed various costs that are found in organizations. 1. Hamburger buns in a Wendy's outlet. 2. Advertising by a dental office. 3. Apples processed and canned by Del Monte. 4. Shipping canned apples from a Del Monte plant to customers. 5. Insurance on a Bausch & Lomb factory producing contact lenses. 6. Insurance on IBM's corporate headquarters. 7. Salary of a supervisor overseeing production of printers at Hewlett-Packard. 8. Commissions paid to automobile salespersons. 9. Depreciation of factory lunchroom facilities at a General Electric plant. 10. Steering wheels installed in BMWs. Required: Classify each cost as being either variable or fixed with respect to the number of units produced and sold. Also classify each cost as either a selling and administrative cost or a product cost. Pre- pare your answer sheet as shown below. Place an X in the appropriate columns to show the proper classification of each cost. con home remedies but mantener Period (Selling and Administrative) cost Cost Behavior Variable Fixed Cost Item Product Cost

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Trinidad Tremblay
Trinidad TremblayLv2
6 May 2018

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