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14 December, 04:57

Match each example below to the correct cost type direct materials $25 per unit

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Answers (2)
  1. 14 December, 06:52
    0
    We can divide costs into three categories:

    fixed. - do not change as total production outcome changes variable. - changes proportionally to total production output mixed. - part fixed, part variable

    Explanation:

    fixed: they stay the same regardless of total output

    depreciation. $4,500 per month property taxes, $12,000 per year

    variable: the more units are produced, the higher they are

    direct materials, $25 per unit shipping costs, $15 per unit

    mixed: a part is fixed per month, while another part increases as total output increases.

    water and sewer, $50 per month plus $0.10 per gallon sales rep's pay, $1,000 per month plus 10% sales commission
  2. 14 December, 07:27
    0
    fixed. - do not change as total production outcome changes

    variable. - changes proportionally to total production output

    mixed. - part fixed, part variable
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