Exercise 183 Cost classications for a service provider C2 Te

Exercise 18-3 Cost classications for a service provider C2 TechPro offers instructional courses in e-commerce website design. The company holds classes in a or indirect (I). Assume the cost object is an individual class -1. Depreciation on classroom building --4. Travel expenses for salesperson ing that it owns, Classify each of TechPro\'s costs below as (a) variable (V) or fixed (F), and (b) diret a. a. 2. Monthly Internet connection cost. Depreciation on computers used for classes 3. Instructional manuals for students 6. Instructor wage (per class)

Solution

A B particulars Fixed indirect Depreciation on classroom building Fixed direct monthly internet connection cost Variable direct instructional manual for students Variable indirect travelling expense for salesperson Fixed direct depreciation on computer ised for teaching Fixed direct instructor wage (per class)