Question
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 3 years agoRelated Solutions
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 Fixed b. Sales commissions Variable 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...
Intuit Inc. develops and sells software products for the personal finance market, including popular titles such...
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....
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Product A
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Product C
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$
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$
13.00
$
30.00
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5.00
$
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$
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60
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20
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20
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No. of Products
Total Variable Costs, $
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Average Fixed Cost $
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Average Total Cost $
Marginal Cost$
0
0
1
12
2
20
3
24
4
27
5
40
6
65
7
98
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