The following are costs incurred by Sulfo industries:
- Variable costs - A. Wood used in the production of furniture, D. Sales staff salaries, E. Sales commissions, H. Hourly wages of furniture craftsmen, J. Utilities expense, K. Telephone bill
- Fixed costs - B. Straight-line depreciation on factory building, F. Property taxes, G. Insurance on buildings,
- Mixed costs - C. Screws used in the production of furniture, I. Salaries of factory supervisors
What is Variable, Fixed, and Mixed Costs?
Variable costs are costs of production that changes with the volume of production.
Fixed costs are costs that do not change with the volume of production in the short run.
Mixed costs are the combination of fixed and variable costs. They can remain fixed in the short run, and can also change with the volume of production in the short run.
Therefore, the following are costs incurred by Sulfo industries:
- Variable costs - A. Wood used in the production of furniture, D. Sales staff salaries, E. Sales commissions, H. Hourly wages of furniture craftsmen, J. Utilities expense, K. Telephone bill
- Fixed costs - B. Straight-line depreciation on factory building, F. Property taxes, G. Insurance on buildings,
- Mixed costs - C. Screws used in the production of furniture, I. Salaries of factory supervisors
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