Direct materials, sales commissions and factory electricity, Accounting Basics

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You have been assigned to analyze the costs of NC Microelectronics, a microchip manufacturer. Indicate whether the following costs are more likely fixed (F), variable (V), or mixed (M), with respect to the number of chips sold.

1. President's salary

2. Sales commissions

3. Direct materials

4. Salary of vice president of manufacturing

5. Factory electricity

6. Rent for headquarters building

7. Fire insurance on manufacturing facility

8. Direct labor

9. Property taxes on the factory

10. Maintenance on headquarters building

 


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