Question

Classify the total costs of each of the following as variable, fixed, mixed, or step.a. Straight-line depreciation on a buildingb. Maintenance costs at a hospitalc. Rent on a photocopy machine charged as a fixed amount per month plus an additional charge per copyd. Cost of goods sold in a bookstore

e. Salaries paid to temporary instructors in a college as the number of course sessions variesf. Lumber used by a house construction companyg. The costs of operating a research departmenth. The cost of hiring a dance band for three hoursi. Laser printer paper for a department printer
j. Electric power in a restaurant

Answer 1

The answer is:

A - Fixed Cost

B - Mixed Cost

C - Mixed Cost

D - Variable Cost

E - Variable Cost

F - Variable Cost

G - Mixed Cost

H - Fixed Cost

I - Variable Cost

J - Mixed cost

Step-by-step explanation:

First let's define the terms:.

Fixed cost is a cost that wont change with varying output. Whether an output increases or decreases, it doesn't change.

Variable cost is a cost that changes with output. If output increases, variable cost increases and vice-versa

Mixed cost is also known as semi-variable cost. It has a combination of both fixed and variable costs

A - Fixed Cost

B - Mixed Cost

C - Mixed Cost

D - Variable Cost

E - Variable Cost

F - Variable Cost

G - Mixed Cost

H - Fixed Cost

I - Variable Cost

J - Mixed cost