Computing the cost of training


Response to the following problem:

Classify each of the following as direct or indirect with respect to traceability to product and as variable or fixed with repect to whether the costs fluctuate in total as volume of production changes over wide ranges. Explain clasifications.

1. The cost of components that are assembled into final product

2, The cost of supplies consumed when maintenance is performed on machines

3. The wages of machine operaters who work on only one product. (Assume increases in production would require paying for additional wages for machine operaters.)

4. The cost of training mechanics who service processing machinery (Assume the costs are asociated with more than one product)

 

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Cost Accounting: Computing the cost of training
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