Hello, I noticed in Chegg\'s textbook solutions section for Financial and Manage

Question

Hello,

                  I noticed in Chegg's textbook solutions section for Financial and Managerial Accounting for MBA's 4th edition, chapter 14 question 11 is missing an answer. Will you please solve question 11 in chapter 14 please.

Classifying Cot Behavior

Classify the total costs of each of the following as variable, fixed, mixed, or step. Sales volume is the cost driver.

a. Salary of the department manager

b. Memory chips in a computer assembly plant

c. Real estate taxes

d. Salaries of quality inspectors when each inspector can evaluate a maximum of 1,000 units per day

e. Wages paid to production employees for the time spent working on products

f. Electric power in a factory

g. Raw materials used in production

h. Automobiles rented on the basis of a fixed charge per da plus an additional charge per mile driven

i. Sales commissions

j. Depreciation on office equipment

Thanks!

Explanation / Answer

(a) Fixed

(b) Fixed

(c) Fixed

(d) Step cost. The step means they have to hire a new inspector whenever they decide to produce more than 1000 units times the number of inspectors they already have.

(e) Step

(f) Mixed

(g) Variable

(h) Mixed

(i) Variable

(j) Fixed

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