Intuit Inc. develops and sells software products for the personal finance market

Question

Intuit Inc. develops and sells software products for the personal finance market, including popular titles such as Quickbooks and TurboTax. Classify each of the following cost and expenses for the company as with variable to the number of units produced and sold:

a. Packaging costs

b. Sales commissions

c. Property taxes on general offices

d. Shipping expenses

e. Straight-line depreciation of computer equipment

f. President's salary

g. Salaries of software developers

h. Salaries of human resources personnel

i. Wages of telephone order assistants

j. CDs

k. Users' guides

Explanation / Answer

a Packing cost: Variable since change with the no of unit produce and sold b Sales Commission: Variable since change with the no of unit produce and sold c Property Tax on general office: Fixed since it does not depend on unit produce d Shipping expenses: fixed since not change with the change in unit e straight line depreciation of computer equipment: Fixed since do not change with the the change in unit f President's salary: Fixed g Salaries of software developers: Variable since depend on no of software produce h salaries of humar resources personal: Fixed no change with the change in unit produced i wages of telephone order assistants: variable j CDs: variable depend upon no of software develop k User's guide: variable

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