Classifying Costs and Decision-MakingIn July, Carrie's Rock Walls Inc. completed several projects, one of which was a rock wall for city hall. Costs for the month of July for the company included the following.City hall projectSalary of consultant who prepared proposals on all new projectsSalary of the designer who prepares designs for all new projectsCity permit for city hall projectCost of brick and mortar for city hall projectMonthly depreciation on equipment used for projectMiscellaneous tools (shovel, chisel, etc.) used for projectsMiscellaneous supplies used during the month on projectsSalary of rock layer based on hours worked on projectGas and maintenance expense on vehicles to transport heavy equipmentRent on office space for designer, consultants, and other personnelJuly$4,000$4,500$40$6,000$1,000$6,000$1,400$4,500$500$2,000REQUIREDa. Relative to the city hall project, classify each of the following costs as variable or fixed AND direct or indirect.Direct or indirect Variable or fixedCity hall project→Salary of consultant who prepared proposals on all new projectsSalary of the designer who prepares designs for all new projectsCity permit for city hall projectCost of brick and mortar for city hall projectMonthly depreciation on equipment used for projectMiscellaneous tools (shovel, chisel, etc.) used for projectsMiscellaneous supplies used during the month on projectsSalary of rock layer based on hours worked on projectGasenance expense on vehicles to transport heavy equipmentRent on office space for designer, consultants, and other personnelb. Would you recommend that the bid for the city hall job include, at a minimum, only the direct costs, in order for the company to be not worse off?July$4,000$4,500$40$6,000$1,000$6,000$1,400$4,500$500$2,000<< 400 00→#++→→→+→→→47 47 47 4◆

It is the process of making decisions that involve the management of costs in order to achieve…

In July, Carrie's Rock Walls Inc. completed several projects, one of which was a rock wall for city hall. Costs for the month of July for the company included the following. July $4,000 City hall project Salary of consultant who prepared proposals on all new projects Salary of the designer who prepares designs for all new projects City permit for city hall project $4,500 $40 Cost of brick and mortar for city hall project $6,000 Monthly depreciation on equipment used for project $1,000 $6,000 Miscellaneous tools (shovel, chisel, etc.) used for projects Miscellaneous supplies used during the month on projects Salary of rock layer based on hours worked on project $1,400 $4,500 $500 Gas and maintenance expense on vehicles to transport heavy equipment Rent on office space for designer, consultants, and other personnel $2,000

In July, Carrie's Rock Walls Inc. completed several projects, one of which was a rock wall for city hall. Costs for the month of July for the company included the following. July $4,000 City hall project Salary of consultant who prepared proposals on all new projects Salary of the designer who prepares designs for all new projects City permit for city hall project $4,500 $40 Cost of brick and mortar for city hall project $6,000 Monthly depreciation on equipment used for project $1,000 $6,000 Miscellaneous tools (shovel, chisel, etc.) used for projects Miscellaneous supplies used during the month on projects Salary of rock layer based on hours worked on project $1,400 $4,500 $500 Gas and maintenance expense on vehicles to transport heavy equipment Rent on office space for designer, consultants, and other personnel $2,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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