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In: Accounting

Identify Fixed and Variable Costs Intuit Inc. develops and sells software products for the personal finance...

Identify Fixed and Variable Costs

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 costs and expenses for this company as either variable or fixed 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. Costs of providing online support
k. Users' guides

Solutions

Expert Solution

Type of Costs
a. Packaging costs Variable Costs
b. Sales commissions Variable Costs
c. Property taxes on general offices Fixed Costs
d. Shipping expenses Variable Costs
e. Straight-line depreciation of computer equipment Fixed Costs
f. President’s salary Fixed Costs
g. Salaries of software developers Fixed Costs
h. Salaries of human resources personnel Fixed Costs
i. Wages of telephone order assistants Variable Costs
j. Costs of providing online support Variable Costs
k. Users' guides Variable Costs
The variable costs are the costs which varies with the level of activity and number of units sold or produced
Fixed costs are the period costs, they remain the same month of month irrespective of the number of units produced or sold- They do not vary as per level of activity

ekkarill92 answered 2 years ago
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