Classify Each of the Following Costs as Variable, Fixed, Mixed

question 9

Essay

Classify each of the following costs as variable, fixed, mixed, or step by writing an X under one of the following headings (Sales volume is the cost driver). $\begin{array}{|l|l|c|c|c|c|}\hline & & \text { Variable } & \text { Fixed } & \text { Mixed } & \text { Step } \\\hline 1.& \text { Total selling and administrative costs } & & & & \\\hline 2 . & \text { Salaries of supervisors of five employees } & & & & \\\hline 3 . & \text { Raw materials used in production } & & & & \\\hline 4 . & \text { Power consumption in a restaurant } & & & & \\\hline 5 . & \text { Cost of goods sold in a bookstore } & & & & \\\hline 6.& \text { Salaries of employees who handle } 20 \text { claims } \\&\text { per month } & & & & \\\hline 7 . & \text { Pulpwood in a paper mill } & & & & \\\hline 8.&\text { Salaries of two secretaries in the corporate } \\&\text { office } & & & & \\\hline 9 . & \text { Total current manufacturing costs } & & & & \\\hline 10.&\text { The cost of an automobile rented on the basis } \\&\text { of a daily charge plus E. } 30 \text { per mile } & & & & \\\hline\end{array}$

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Definitions:

Communism

A political and economic ideology advocating for a classless system where the means of production are owned communally and private property is nonexistent or severely curtailed.

Corporate Mergers

The combination of two or more companies into a single entity, often with the aim of boosting growth, reducing competition, and achieving economies of scale.

Oligopolies

Are giant corporations that control part of an economy. They are few in number and tend not to compete against one another. Instead, they can set prices at levels that are most profitable for them.

Primary Labour Market

describes sectors of the economy that offer high-paying jobs, secure employment, good working conditions, and benefits.