insurance company pays its employees a commission of 6 percent on each sale. What is the proper classification of the cost of sales commissions? a) Constant cost. b) Variable cost. c) Mixed cost. d) Fixed cost.

insurance company pays its employees a commission of 6 percent on each sale. What is the proper classification of the cost of sales commissions? a) Constant cost. b) Variable cost. c) Mixed cost. d) Fixed cost.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 5DQ

See similar textbooks

Related questions

Q: What was the effect of W's purchase of XYZ's bond on the retained earnings amount reported in XYZ's ...

A: The effect of W's purchase of XYZ's bond on the retained earnings amount reported in XYZ's March 31,...

Q: What was the effect of W's purchase of XYZ's bond on the noncontrolling interest amount reported in ...

A: Bonds are debt investment from the perspective of purchaser and long-term liability from the perspec...

Q: Exercise in Calculating Activity Ratios United Instruments, Inc. Selected Financial Statement Statis...

A: By analyzing financial records such as the financial statement, ratio analysis is a quantitative tec...

Q: Institute Technologies is choosing new cost drivers for its accounting system. One driver is labor h...

A: Answer) Calculation of Total Flexible Budget for Actual Labor hours Flexible Budget for Actual Labor...

Q: A draw bench for precision forming and strengthening of carbon steel tubing has a cost of S950,000. ...

A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life years

Q: STARS Company reported net income for the current year 2021 before taxes is #4,288,000. The followin...

A: Profit before tax 4288000 Less: interest on depository account (53000) Add : warranty expenses a...

Q: "The valuation of real estate is based on a cobination of facts, assumptions and judgement" critical...

A: Investment Valuation is a method which has been adopted by the company or the investor to value the ...

Q: 1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers t...

A: Depreciation is the reduction in the value of asset due to its normal use and tear and wear. It is c...

Q: What is the amount of total Assets to report on the Balance Sheet for Pack Compa

A: Introduction:- Assets includes the following as follows under:- Current assets Non-current assets I...

Q: The company purchased land for $150,000 cash. Commissions of $9,000, property taxes of $3,750, and t...

A: Cost of the Land = Purchase costs + Commission + Property taxes paid by the company on behalf of the...

Q: Shaw Incorporated began this period with a budget for 1,050 units of predicted production. The budge...

A: Volume Variance is a way to determine whether or not there is a discrepancy between the actual amoun...

Q: Sheffield Inc. manufactures two products: car wheels and truck wheels. To determine the amount of ov...

A: The question is based on the concept of Cost Accounting.

Q: On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gain on acquisition of P1...

A: PCO purchased 70% ownership in SCO.

Q: 12. Which TWO of the following would be regarded as cost objects

A: Cost object is item for which cost is comploed. Following is the cost objects.

Q: What was the effect of W's purchase of XYZ's bond on the retained earnings amount reported in XYZ's ...

A: When company owns more than 50% shares in other company, then the acquired company is parent company...

Q: PT Water Canon sells 2 types of water pumps. HP7 Pumps are used for factories and WP7 Pumps for hous...

A: You have posted multiple questions, as per Bartleby policy only the first question will be answered....

Q: S.A.Q 1.5 ACTIVITY 4: Freight Kim Taehyung paid for P3,000 freight for the goods he purchased from H...

A: FOB shipping point FOB shipping point means that the ownership is transferred to the buyer when the ...

Q: When the fair value of plan assets is multiplied with a discount rate, an interest expense arise. ...

A: There is mainly two types of accounts which are kept in the defined benefit plan. One is Defined Be...

Q: trepare the journal entries for 2020 relating to these events, using the a. Legal budgetary basis. D...

A: Journal entry is the entries which have to be recorded in the books of the company on the general jo...

Q: The Company allows customers to pay with credit cards. The credit card company charges the Company 4...

A: Cash received = Sales - Credit card charges where, Credit card charges = Sales x Credit card charges...

Q: (A Equity fund В Bond fund Balanced fund D Money market fund

A: Tax Slip from Canadian Mutual fund, showing below mentioned Income Capital Gain $1000 Dividend Inc...

Q: pany purchased a computer that cost $10,000, It had an estimated useful life of 5 years and no resid...

A: Under straight line depreciation method, annual depreciation is based on useful life in years. Book ...

Q: 1,200,000 Direct expenses 4,000,000 Bills payable 150,000 Net sales 80,000,...

A: The answer has been mentioned below.

Q: The following investment account was taken from the general ledger of One Dream Investment Company: ...

A: Question 1 Debit to the investment account by P120000 (P60000 due on June 30,2022 and P60000 due on...

Q: The company Alumnos Emprendedores S.A. has an investment for a total amount of $175,800.00, and annu...

A: Period of Recovery (in years) = Investment / Annual Cash Flow

Q: Among the inherent powers of the State: O Taxation is the most punitive and restricting. O Taxation ...

A: Among the inherent powers of the state: Taxation constitutes the most direct form of equivalent com...

Q: On January 1, 2024, Lanny, Inc. purchased a copyright for $410,000 cash. The copyright is expected t...

A: Formula: Depreciation expense = ( Asset cost - Salvage value ) / Useful life

Q: 20. Below is an internal control associated with some financial statement audit cycle that the audit...

A: Internal controls are the procedures, rules and system which is established by the company to preven...

Q: Refund of value added taxes in the current year which were errone paid in a prior year is generally ...

A: Refund of value added tax is not a income. It is just refund of amount which was erroneously paid.

Q: utar Payle ts Recevable Required: 1. Post the adjusting journal Adjusting journal entries a. Bad deb...

A: You have posted multiple-part question, so as per Bartleby policy only the first three interlinked p...

Q: Financial Accounting C.Mulford: Financial Statement Analysis: 7 Exercise in Understanding Changes in...

Q: P9. The following information is available for Delta Company as of April 30, 2014 GENERAL LEDGER AD...

A: Lease rentals are the expense for the lessee that is to be paid till the end of the lease term for u...

Q: Which of the following is not a benefit of budgeting? It is a basis for performance evaluation. It a...

A: Budgeting is a process of preparing a plan to estimate the expenses and income of an organisation ov...

Q: ABC Company , a holder of P1,000,000 XYZ Company bonds, collected the interest due on March 31, year...

A: A company that purchases the majority of shares (i.e substantial interest) in another company than t...

Q: Scenario: Steve Osbourne is considering opening a business, but the major decision faced is how to ...

A: Earned net income $820000.

Q: Assuming the contract entered into at the price you computed is $365.42 and the underlying asset is ...

A: Forward Contract: When two parties agree to purchase or sell a certain asset at a given price on a s...

Q: Ms. Balo, spouse of the decedent who died in a bus accident, received P2, 500,000 broken down as fol...

A: The total value of assets of an individual at the time of his or her death is known as gross estate....

Q: DEFINE AND INDICATE TYPES OF DUMPING.

A: Dumping: Dumping refers to the reduced price of the products at which price the exporters exports go...

Q: At 30 June 2002 a company had Klm 8% loan notes in issue, interest being paid half- yearly on 30 Jun...

A: Date Description Interest Calculation Interest Expense 30-Sep-02 Interest Expense on 250...

Q: Basic community tax is an example of while income tax is a kind of O Privilege tax; capitation tax P...

A: Basic community tax is an example of Privilege tax while income tax is a kind of Capitation tax.

Q: Lease bonus is recognized by the lessor as a liability amortized over the lease term. * True or Fa...

A: Introduction:- A lease defined as where one party provide or gives right to use a property to anothe...

Q: Senario The company is desirous of comparing serval financial transactions and possible outcomes t...

A: Closing entries for net income is done by transferring the balance of income summary which represent...

Q: A company uses an overhead absorption rate of £6·50 per labour hour, based on 40,000 budgeted labour...

A: Under (over)absorbed overhead for the period = Actual total overhead expenditure - Applied overhead ...

Q: 7. Toews Ltd has prepared the following flexible budget for the coming year. The Budgeted level of a...

A: The variable cost changes with level of production but fixed cost remains constant at every level of...

Q: On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gain on acquisition of P1...

A: Acquisition refers to the purchase of a part or complete ownership of a corporation by another corpo...

Q: In a defined contribution plan, as long as the employer makes a definite contribution to the plan, t...

A: Defined-contribution plans are funded primarily by the employee. But many employers make contributio...

Q: 1 On December 31, 200C, the partnership of Hue and Teng realized a profit of P 225,000. The capital ...

A: Interest on capital of Hue = P20,000 x 12% x 1012= P2,000 Interest on capital of Teng = P50,000 x 12...

Q: QT, Inc., and Elppa Computers, Inc., compete with each other in the personal computer market. QT ass...

A: Average inventory = Beginning inventory + Ending inventory 2 QT = ...

Q: Which of the following best describes a voucher? A supporting document prepared for each cash recei...

A: A voucher checks are commonly used by a company's payroll department and are referred to as payroll ...

Q: ACTIVITY 3: Entries for Purchase of Goods On January 3, 2020, Kim Taehyung made a purchase. The list...

A: The transaction of inventory relating to purchase and sale can be recorded by any of the two methods...

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

An insurance company pays its employees a commission of 6 percent on each sale. What is the proper classification of the cost of sales commissions?

a) Constant cost.
b) Variable cost.
c) Mixed cost.
d) Fixed cost.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

6. Wholesale Distributors sells to its contractors with a 42% markup on cost. If the selling price for cabinets is $9,182, what is the cost to contractors based on cost? (Round your answer to the nearest cent.)
A salesman has a basic salary and in addition,receives a commission which is a fixed percentage of his sales volume. When his weekly sales are Br.1000,his total salary is br.400.When his weekly sales are 500.00,his total salary is br.300.Determine his basic salary and his commission percentage and express the relationship between sales and salary in equation form
# You can buy a product from one of three companies. Company A for $3,200 with a trade discount of 30%, Company B for $2,900 with a trade discount of 20% and 10%, or Company C for $3,450 with a trade discount of 20%, 15%, 5%. Which company has the lowest net price?
The retailer price of a refrigiretor is £807. If the manufacturer gains 11%, the wholesale dealer gains 10% and the retailer gains 6%, what is the cost of the product? Round your answer to the nearest penny.
A kitchenware company receives a 30% discount, followed by a 20% discount, from its supplier. What is the total percent discount?
Many different businesses employ markup on cost to arrive at a price. For each of the following situations, explain what the markup covers and why it is the amount that it is. a. Department stores have a markup of 100 percent of purchase cost. b. Jewelry stores charge anywhere from 100 percent to 300 percent of the cost of the jewelry. (The 300 percent markup is referred to as keystone.) c. Johnson Construction Company charges 12 percent on direct materials, direct labor, and subcontracting costs. d. Hamilton Auto Repair charges customers for direct materials and direct labor. Customers are charged 45 per direct labor hour worked on their job; however, the employees actually cost Hamilton 15 per hour.
Carla Vista Company sells product 1976NLC for $20 per unit. The cost of one unit of 1976NLC is $21, and the replacement cost is $20. The estimated cost to dispose of a unit is $4, and the normal profit is 30% of selling price. At what amount per unit should product 1976NLC be reported, applying lower-of-cost-or-market?
Given the following, calculate the net price of the purchase by a customer who buys 1,000 cases of product and pays the supplier within 15 days of shipment. What is the total percentage discount on the sale? Cost of product: $75.00 per case Trade discount: $5.00 per case Quantity discount: 1.5% for each 500 cases Performance allowance: 5% Cash discount: 2/10, net 30
Front Range Cabinet Distributors in Colorado Springs, Colorado, sells to its contractors with a 45% markup on cost. If the selling price to the contractors is $ 9,326, what is the original cost to Front Range Cabinet Distributors?
A distributor purchases industrial fans for $147 each. Its profit is 9.00% on selling price and markup is 25.00% on selling price. During a trade show, if the distributor offers a markdown of 9.00% on its fans, calculate the reduced profit or loss made per fan. Round to the nearest cent. Express a loss as a negative
As shown below, a shop purchases and sells a certain type of product. Purchasing price : $10 per unit Selling price : $15 per unit Fixed cost : $1,000 How many units are sold at a “break even” point, where there is neither a profit nor a loss?
A work at home opportunity is available in which you will receive 3 percent of the sales for customers you refer to the company. The cost of your franchise fee is $600. How much would your customers have to buy to cover the cost of this fee?