Identify the following planned costs as (a) purely variable costs, (b) discretionary fixed costs, (c) committed fixed costs, (d) mixed costs, or (e) step costs.
1. Crew supervisor in a small construction company. A new supervisor is needed for every 12 workers employed.
2. Sales commissions based on sales dollars.
3. Compensation of accountants employed internally by a local manufacturing company.
4. Direct labor.
5. Rental payment on a 30- year lease for office space in a private office building.
6. Repairs made on computers in the office.

Question

Quizplus · Accepted Answer

The Answer of Identify the following planned costs as (a) purely variable costs, (b) discretionary fixed costs, (c) committed fixed costs, (d) mixed costs, or (e) step costs.
1. Crew supervisor in a small construction company. A new supervisor is needed for every 12 workers employed.
2. Sales commissions based on sales dollars.
3. Compensation of accountants employed internally by a local manufacturing company.
4. Direct labor.
5. Rental payment on a 30- year lease for office space in a private office building.
6. Repairs made on computers in the office.

Identify the Following Planned Costs as (A) Purely Variable Costs