Chapter 2, Problem 2.16SE

Classify costs as fixed or variable (Learning Objective 7)

Classify each of the following costs as fixed or variable:

1. a. Cost of French fries used at a McDonald’s restaurant
2. b. Hourly wages paid to cashiers at The Home Depot
3. c. Monthly sugar costs for The Hershey Company
4. d. Cost of fuel used by Old Dominion Freight Line, a national trucking company
5. e. Shipping costs at Amazon.com
6. f. Monthly rent for Onyx Nail Bar, a nail salon in Dallas, Texas
7. g. Sales commissions at Tampa Honda in Florida
8. h. Monthly insurance costs for the building housing the administrative offices of Panera Bread in St. Louis, Missouri
9. i. Monthly depreciation of equipment used in the customer service department at Klaben Ford Lincoln, a car dealership in Kent, Ohio
10. j. Cost of rubber used to manufacture L.L.Bean boots
11. k. Cost of oranges sold at a Kroger’s grocery store
12. l. Monthly office lease costs for the Portland office of E & Y, a global audit firm
13. m. Monthly cost of coffee at a Dunkin’ Donuts store
14. n. Property taxes for an Applebee’s Neighborhood Grill & Bar
15. ○. Depreciation of exercise equipment at an LA Fitness club