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The following are items normally found in the cost reports of a sedan car assembly company:
m
er as
e. Electricity costs of parts received from suppliers.
f. Annual awards dinner for suppliers.
co
eH w
g. Salary of design engineer who monitors design changes.
h. Communications costs, under a plan basis.
o.
rs e
ou urc
Required: Classify each cost as either direct or indirect with respect to the assembly process
and variable or fixed with respect to how the total costs of the plant change as the number of
cars assembled changes. Use the format below:
o
aC s
vi y re
D Direct Variable
ar stu
E Indirect Variable
F Indirect Fixed
G Indirect Fixed
is
H Indirect Fixed
Th
Gutierrez, Isabel M.
MBA20-00080
sh
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