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Account Analysis to Determine Cost Behavior Darnell Poston, owner of Poston Manufacturing, Inc., wants to determine the cost
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Workers' salaries are FIXED COST as every worker works during busy times to get orders out and also the amount of $7200 is fixed for each month. Thus it is a FIXED COST.

Temp agency payments are VARIABLE COSTS as they are only hired when required and also the amounts are different in each month. Hence VARIABLE COST.

Warehouse Rental is VARIABLE COST as it is rented when required and also the amount per month is different.

Electricity is VARIABLE COST as it varies with the usage.

Plant and Equipment Depreciation is FIXED COST as the amounts are same for each month.

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