Explain whether the following costs or categories of costs are fixed, variable, or semi-variable with respect to net sales. a) The cost of goods sold. b) Salaries to salespeople (these salaries include a monthly minimum amount, plus a commission on all sales). c) Income taxes expense. d) Property taxes expense. e) Depreciation expense on a sales showroom, based on the straight-line method of depreciation. f) Depreciation expense on a sales showroom, based on the double-declining-balance method of depreciation.

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Answer 1

Question

Chapter 20, Problem 2BE

To determine

Explain whether the following costs or categories of costs are fixed, variable, or semi-variable with respect to net sales.

a) The cost of goods sold.

b) Salaries to salespeople (these salaries include a monthly minimum amount, plus a commission on all sales).

c) Income taxes expense.

d) Property taxes expense.

e) Depreciation expense on a sales showroom, based on the straight-line method of depreciation.

f) Depreciation expense on a sales showroom, based on the double-declining-balance method of depreciation.

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Answer 2

Question

Chapter 20, Problem 2BE

To determine

Explain whether the following costs or categories of costs are fixed, variable, or semi-variable with respect to net sales.

a) The cost of goods sold.

b) Salaries to salespeople (these salaries include a monthly minimum amount, plus a commission on all sales).

c) Income taxes expense.

d) Property taxes expense.

e) Depreciation expense on a sales showroom, based on the straight-line method of depreciation.

f) Depreciation expense on a sales showroom, based on the double-declining-balance method of depreciation.

Expert Solution & Answer

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Answer 3

Question

Chapter 20, Problem 2BE

To determine

Explain whether the following costs or categories of costs are fixed, variable, or semi-variable with respect to net sales.

a) The cost of goods sold.

b) Salaries to salespeople (these salaries include a monthly minimum amount, plus a commission on all sales).

c) Income taxes expense.

d) Property taxes expense.

e) Depreciation expense on a sales showroom, based on the straight-line method of depreciation.

f) Depreciation expense on a sales showroom, based on the double-declining-balance method of depreciation.

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Answer 4

Question

Chapter 20, Problem 2BE

To determine

Explain whether the following costs or categories of costs are fixed, variable, or semi-variable with respect to net sales.

a) The cost of goods sold.

b) Salaries to salespeople (these salaries include a monthly minimum amount, plus a commission on all sales).

c) Income taxes expense.

d) Property taxes expense.

e) Depreciation expense on a sales showroom, based on the straight-line method of depreciation.

f) Depreciation expense on a sales showroom, based on the double-declining-balance method of depreciation.

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Answer 5

Chapter 20, Problem 2BE

To determine

Explain whether the following costs or categories of costs are fixed, variable, or semi-variable with respect to net sales.

a) The cost of goods sold.

b) Salaries to salespeople (these salaries include a monthly minimum amount, plus a commission on all sales).

c) Income taxes expense.

d) Property taxes expense.

e) Depreciation expense on a sales showroom, based on the straight-line method of depreciation.

f) Depreciation expense on a sales showroom, based on the double-declining-balance method of depreciation.

Answer 6

Chapter 20, Problem 2BE

To determine

Explain whether the following costs or categories of costs are fixed, variable, or semi-variable with respect to net sales.

a) The cost of goods sold.

b) Salaries to salespeople (these salaries include a monthly minimum amount, plus a commission on all sales).

c) Income taxes expense.

d) Property taxes expense.

e) Depreciation expense on a sales showroom, based on the straight-line method of depreciation.

f) Depreciation expense on a sales showroom, based on the double-declining-balance method of depreciation.

Answer 7

Chapter 20, Problem 2BE

To determine

Explain whether the following costs or categories of costs are fixed, variable, or semi-variable with respect to net sales.

a) The cost of goods sold.

b) Salaries to salespeople (these salaries include a monthly minimum amount, plus a commission on all sales).

c) Income taxes expense.

d) Property taxes expense.

e) Depreciation expense on a sales showroom, based on the straight-line method of depreciation.

f) Depreciation expense on a sales showroom, based on the double-declining-balance method of depreciation.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 20 - Prob. 1STQ Ch. 20 - Prob. 2STQ Ch. 20 - Prob. 3STQ Ch. 20 - Prob. 4STQ Ch. 20 - Prob. 5STQ Ch. 20 - Prob. 1DQ Ch. 20 - Prob. 2DQ Ch. 20 - Prob. 3DQ Ch. 20 - Prob. 4DQ Ch. 20 - 5. Define the relevant range of activity.

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