Magik City Enterprises SolutionVariable costs are the costs

Solution

Variable costs are the costs which change when the output changes.

Fixed costs do not change irrespective of output upto some extent.

Direct costs are costs that are directly attributable to the product.

Indirect costs are not attributable for the product.

Product costs are costs incurred directly on a product.

Period costs are costs which are incurred as a whole and then charged to the revenue.

Factory Rent - - - - - C

Advertising - - - - - - E

Packing supplies for shipping - - - - - E

Factory security guard - - - - - - C

Wages of employees who sand the wood - - - - D

Administrative assistant in Corporate office - - B

Paper towels in men\'s room in the factory - - - - A

Executive Jet - - - - - - B

Lumber - - - - - - - - - - D

Depreciation on Factory Tools - - - - - - C