Match Each of the Following Costs of Producing T-Shirts with the Appropriate

question 42

Short Answer

Match each of the following costs of producing T-shirts with the appropriate classification (a-c).
-Salary of the production supervisor
A)Variable cost
B)Fixed cost
C)Mixed cost

• A)Variable cost
• B)Fixed cost
• C)Mixed cost

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Definitions:

Gross Profit

Gross Profit is the financial metric calculated by subtracting the cost of goods sold (COGS) from total sales revenue.

Purchases

The total amount expended on goods or services intended for use in the business process.

LIFO

"Last In, First Out," an inventory valuation method where the most recently produced or purchased items are the first to be expensed.

Cost Flow Assumption

An accounting principle that determines how costs are allocated to inventory and cost of goods sold, examples include FIFO, LIFO, and average cost methods.