Below Are Several Examples of Costs That Are Labeled Fixed

question 15

Essay

Below are several examples of costs that are labeled fixed or variable according to their typical accounting designations. Under which circumstances would any of these costs behave in a manner opposite to that listed?
a. Direct labor-variable.
b. Equipment depreciation-fixed.
c. Utilities (with a minimum charge)-variable.
d. Supervisory salaries-fixed.
e. Indirect materials purchased in given lot sizes that become spoiled within a few days-variable.

---

Definitions:

Federal Power

The authority held by the national government of a federal state, as distinguished from the powers held by state or provincial governments.

States' Rights

The principle or belief in the U.S. political framework that states have certain rights and political powers independent of the federal government, often highlighted in debates on federalism and the distribution of powers.

Welfare Subsidies

Welfare subsidies refer to government financial assistance programs designed to help individuals and families in need to afford basic life necessities such as food, healthcare, and housing.

Defense Expenditure

financial spending dedicated to military forces and activities including personnel, operations, and maintenance, arms, and equipment procurement.