QUESTION 1                      Below are a number of costs that are incurred in a variety of Companies  1.    X-ray film used in the radiology lab at a  medical centre. 2.    The cost of advertising a Music festival at FNB stadium  3.    Depriciation on the Tasty Meals restaurant building in Brooklyn 4.    The electrical costs of running a roller coater at an amusement park 5.    Property centre on a local cinema 6.    Commissions paid to sales persons at a sales company 7.    Property insurance at a cold drink bottling company 8.    The cost of materials used to make running sjoes 9.    The cost of shipping television sets to retal shops 10. The cost of leasing an Ultra -scan diagnostic machine at a hospital Required Classify each cost as being variable or fixed with respect to the number of units of product or services sold by the companies.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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 QUESTION 1                     

Below are a number of costs that are incurred in a variety of Companies 

1.    X-ray film used in the radiology lab at a  medical centre.

2.    The cost of advertising a Music festival at FNB stadium 

3.    Depriciation on the Tasty Meals restaurant building in Brooklyn

4.    The electrical costs of running a roller coater at an amusement park

5.    Property centre on a local cinema

6.    Commissions paid to sales persons at a sales company

7.    Property insurance at a cold drink bottling company

8.    The cost of materials used to make running sjoes

9.    The cost of shipping television sets to retal shops

10. The cost of leasing an Ultra -scan diagnostic machine at a hospital

Required

Classify each cost as being variable or fixed with respect to the number of units of product or services sold by the companies. 

Use the table to provide answers by placing an X under the appropriate heading ( see attached ) 

 

Cost behavior
Cost item
Variable
fixed
Transcribed Image Text:Cost behavior Cost item Variable fixed
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