A number of costs and measures of activity are listed below. Cost DescriptionPossible Measure of Activity1.Salary of production manager at a surfboard manufacturerSurfboards produced2.Cost of solder used in making computersComputers produced3.Cost of dough used at a pizza shopPizzas cooked4.Janitorial wages at a surfboard manufacturerSurfboards produced5.Salary of the controller at a hospitalNumber of patients6.Cost of sales at an electronics storeDollar sales7.Cost of testing materials used in a medical labTests run8.Cost of heating an electronics storeDollar sales9.Cost of electricity for production equipment at a surfboard manufacturerSurfboards produced10.Depreciation on shelving at a book storeDollar salesRequired:For each item above, indicate whether the cost is MAINLY fixed or
variable with respect to the possible measure of activity listed next to it.
What will be an ideal response?
1. Salary of production manager at a surfboard manufacturer; Surfboards produced; Fixed
2. Cost of solder used in making computers; Computers produced; Variable
3. Cost of dough used at a pizza shop; Pizzas cooked; Variable
4. Janitorial wages at a surfboard manufacturer; Surfboards produced; Fixed
5. Salary of the controller at a hospital; Number of patients; Fixed
6. Cost of sales at an electronics store; Dollar sales; Variable
7. Cost of testing materials used in a medical lab; Tests run; Variable
8. Cost of heating an electronics store; Dollar sales; Fixed
9. Cost of electricity for production equipment at a surfboard manufacturer; Surfboards produced; Variable
10. Depreciation on shelving at a book store; Dollar sales; Fixed
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What will be an ideal response?