Cost Chapter 2

Cost Chapter 2 - Dianne Estrada 2-20 Classification of...

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Dianne Estrada 2-20 Classification of costs, manufacturing sector. Cost Item A. Cost of tires used on Geo Prisms. B. Salary of public relations manager for NUMMI plant. C. Annual awards dinner for Corolla suppliers. D. Salary of engineer who monitors design changes on Geo Prism. E. Freight costs of Corolla engines shipped from Toyota City, Japan, to Fremont, California. F. Electricity costs for NUMMI plant (single bill covers entire plant). G. Wages paid to temporary assembly-line workers hired in periods of high production (paid H. Annual fire-insurance policy cost for NUMMI plant.
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D or I V or F D V I F D F D F D V I V on hourly basis D V I F
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Dianne Estrada 2-22 Variable costs and fixed costs 1. Variable Subcontractor $80 per ton Government tax $50 per ton Total $130 per ton Fixed 0-100 tons per day ### 101-200 tons per day ### 204-300 tons per day ### 2. The concept of relevant range is possible applicable to both graphs, but there are not any restrictions on unit variable costs. Fixed costs do not change in total within the ranges. Relevant range for total fixed costs is 0-100, 101-200, and 201-300.
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This note was uploaded on 03/12/2011 for the course BUS 100 taught by Professor Various during the Spring '11 term at Hardin-Simmons.

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Cost Chapter 2 - Dianne Estrada 2-20 Classification of...

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