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TechPro offers instructional courses in e-commerce website design. The company holds classes in a building that it owns.
Identify each of TechPro’s costs below as (a) variable or fixed and (b) direct or indirect by selecting the appropriate dropdowns. Assume the cost object is an individual class.
1. Depreciation on classroom building
2. Monthly Internet connection cost
3. Instruction manuals for students
4. Travel expenses for salesperson
5. Depreciation on computers used for classes
6. Instructor wage (per class)

Respuesta :

Zviko

Answer:

1. fixed and indirect

2. variable and direct

3. variable and direct

4. fixed and indirect

5. fixed and indirect

6. variable and direct

Explanation:

Fixed and variable costs

A fixed cost is expected to be constant for a short term period whilst a variable cost is expected to vary in direct proportion to the number of units produced in this case it is the individual classes.

Depreciation expense on classroom building and on computers is a fixed cost that is expected to remain constant and the instructor wage varies with the number of classes thus a variable cost.

Direct and Indirect costs

A direct cost can be directly traced to the cost object by observation whist the indirect cost can not be directly traced on a cost object.

The instructors wage is a direct cost, his effort is seen with the success of the classes whist the depreciation expenses are indirect costs.

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