Classify Each of the Following Cost Items as a Variable $\quad$

question 186

Essay

Classify each of the following cost items as a variable cost,a fixed cost,or a mixed cost by placing an X in the appropriate column.Each cost should be evaluated in terms of the volume of units of finished products produced.Also indicate with an X for each item if it is a product cost or a period cost.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Variable, Fixed, or Mixed Cost\quad Product or Period Cost }$
$\begin{array}{llllll}\text { Cost Item } & \text { Variable } & \text { Fixed } & \text { Mixed } & \text { Product } & \text { Period } \\\text { Executive salary } & & & & &\\\text { Direct labor}\\\text { Direct materials}\\\text { Depreciation of}\\\text { manufacturing equipment}\\\text { Indirect labor}\\\text { Factory utilities}\\\text { Delivery expense}\\\text { Television advertising}\\ \text { Indirect materials }\end{array}$

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Definitions:

Oligopoly

Market in which only a few firms compete with one another, and entry by new firms is impeded.

Market Structure

The organizational and other characteristics of a market, influencing the nature of competition and pricing.

Marginal Revenue Curve

The Marginal Revenue Curve shows how additional income varies as a result of changes in the quantity of a good or service sold, highlighting the incremental earnings generated by selling one more unit.

Monopolistic Competition

Monopolistic competition is a market structure where many firms sell products that are similar but not identical, allowing for significant differentiation and some price control.