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158.     Identify the following planned costs as (a) purely variable costs, (b) discretionary fixed costs, (c) committed fixed costs, (d) mixed costs, or (e) step costs.

     1.     Straight-line depreciation on office furniture.
     2.     Electricity used in operating equipment.
     3.     A lump sum amount of advertising costs planned by a local restaurant.
     4.     Nursing supervisors' salaries (a supervisor is needed for each 10 nursing personnel).
     5.     Repairs made on computers.
     6.     Training costs for employees.


159.     Identify the following planned costs as (a) purely variable costs, (b) discretionary fixed costs, (c) committed fixed costs, (d) mixed costs, or (e) step costs.

     1.     Crew supervisor in a small construction company. A new supervisor is needed for every 12 workers employed.
     2.     Sales commissions based on sales dollars.
     3.     Compensation of accountants employed internally by a local manufacturing company.
     4.     Direct labor.
     5.     Rental payment on a 30-year lease for office space in a private office building.
     6.     Repairs made on computers in the office.

 


160.      Explain management influences on cost behavior.


161.     Explain the difference between committed fixed costs and discretionary fixed costs and give an example of each.


162.     Why are cost functions important?

     


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