The matchup is given below:
Cost Description FC/VC DM/IM/DL/IL/DE/IE
Paper used for book pages. VC DM
Rent for the printing press facility. FC IE
Salaries of the printing press operators. VC DL
Radio ad expenses for promoting the books. VC DE
Salary of the graphic designer. FC IL
Ink used in the printing process. VC DM
Property taxes for the printing press facility. FC IE
Electricity used in the printing process. VC IE
Depreciation of printing equipment. FC IE
Commission paid to book sales reps. VC DE
Fixed costs are costs that stay the same no matter how much you make. It means they have to pay for things like buildings and equipment to run the business.
Note that variable costs are expenses that go up or down based on how much stuff is made. These expenses are linked to making things and change depending on how much is produced.
So, the categorization of costs into FC, VC, DM, IM, DL, IL, DE, and IE is important for a lot of reasons.
See text below
CXC/CAPE MOB U2M1-Production & Operations Management
Workbook
Activity 110: Classifying Production Costs
For each cost description, identify whether it is a Fixed Cost (FC) or Variable Cost (VC), AND also classify it as Direct Materials (DM), Indirect Materials (IM), Direct Labour (DL), Indirect Labour (IL), Direct Expense (DE), or Indirect Expense (IE) related to the production of books.
Cost Description
1 Paper used for book pages.
FC/VC
DM/IM/DL/
IL/DE/IE
2
Rent for the printing press facility.
3 Salaries of the printing press operators.
4 Radio ad expenses for promoting the books.
5 Salary of the graphic designer.
6 Ink used in the printing process.
7 Property taxes for the printing press facility.
8 Electricity used in the printing process.
9 Depreciation of printing equipment.
10 Commission paid to book sales reps.