Question

Problem 3-6

Consider each of the following independent situations.

Required:

For each situation, describe the cost as one of the following: fixed cost, variable cost, mixed cost, or step cost.

A. The salary of a legal secretary in a law firm.
B. A lease contract for an automobile which requires a monthly payment of $300 plus $.05 per mile.
C. The cost of lumber for a homebuilder.
D. The cost of Internet service which is calculated based on hours of usage.
E. The cost of telephone service which includes a fixed monthly charge of $50 plus $.10 a minute for long distance calls.
F. The salary cost of seasonal tax preparers for a CPA firm. One tax preparer can prepare 100 tax returns per month.
G. A factory supervisor's salary.
H. The cost of sugar in the production of soft drinks.

Answer 1

Answer:

top 7 parts are answered

A FIXED COST is → MIXED COST c→ VARIABLE LOST Dづ VARIABLE CoST E→ MIXED COST --) VARIABLE LOST