Match each example below to the correct cost type direct materials $25 per unit

Question

Business

Guest

18 January, 19:38

Match each example below to the correct cost type direct materials $25 per unit

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Answers (2)

Know the Answer?

Amorcita · Answer 1

fixed. - do not change as total production outcome changes

variable. - changes proportionally to total production output

mixed. - part fixed, part variable

Jaqueline Estes · Answer 2

We can divide costs into three categories:

fixed. - do not change as total production outcome changes variable. - changes proportionally to total production output mixed. - part fixed, part variable

Explanation:

fixed: they stay the same regardless of total output

depreciation. $4,500 per month property taxes, $12,000 per year

variable: the more units are produced, the higher they are

direct materials, $25 per unit shipping costs, $15 per unit

mixed: a part is fixed per month, while another part increases as total output increases.

water and sewer, $50 per month plus $0.10 per gallon sales rep's pay, $1,000 per month plus 10% sales commission