A Number of Costs and Measures of Activity Are Listed

question 140

Essay

A number of costs and measures of activity are listed below.

Required:
For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed next to it.

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Definitions:

FOB Destination

A shipping term indicating that the seller retains ownership and responsibility over the goods until they are delivered to the buyer's location, at which point the buyer takes over.

Ending Inventory Balance

The value of all the unsold goods that a company has in its possession at the end of an accounting period.

Goods In Transit

Items that have been shipped by a seller but have not yet been received by the purchaser, often included in accounting considerations for inventory management.

Inventory Valuation

The method used to assign a monetary value to inventory, including FIFO, LIFO, and weighted average cost methods.