Identify Fixed and Variable Costs Intuit Inc. develops and sells software products for the personal finance market, including popular titles such as Quickbooks® and TurboTax®. Classify each of the following costs and expenses for this company as either variable or fixed to the number of units produced and sold: a.  Packaging costs   b.  Sales commissions   c.  Property taxes on general offices   d.  Shipping expenses   e.  Straight-line depreciation of computer equipment   f.  President’s salary   g.  Salaries of software developers   h.  Salaries of human resources personnel   i.  Wages of telephone order assistants   j.  Users' guides

Question

Identify Fixed and Variable Costs

Intuit Inc. develops and sells software products for the personal finance market, including popular titles such as Quickbooks® and TurboTax®. Classify each of the following costs and expenses for this company as either variable or fixed to the number of units produced and sold:

a.  Packaging costs  
b.  Sales commissions  
c.  Property taxes on general offices  
d.  Shipping expenses  
e.  Straight-line depreciation of computer equipment  
f.  President’s salary  
g.  Salaries of software developers  
h.  Salaries of human resources personnel  
i.  Wages of telephone order assistants  
j.  Users' guides  

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Cost Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Use the information in the attachment to prepare journal entries without explanations for the follow...

A: Interest Expense for 10 days shall be recorded in the adjusting entry on June 30 The remaining inter...

Q: QUESTION 5 Break-Even Point Sheridan Enterprises sells a product for $84 per unit. The variable cost...

A: Break-even analysis is a technique used widely by the production management. It helps to determine t...

Q: Prior to liquidating their partnership, Craig and Jenny had capital accounts of $65,450 and $129,570...

A: Partnership liquidation happens when partners choose to dissolve and liquidate their partnerships to...

Q: Accounting Question

A: Click to see the answer

Q: Prepare a balance sheet for Thompson Computer Services for the current year ended March 31. Thompson...

A: The balance sheet is a statement prepared to ascertain the true position of assets and liabilities a...

Q: Looking for answers. I really appreciate it. Thanks!

A: Cost of al electric car  $      60,000.00 Sale value o old car  $      14,000.00 Initial investm...

Q: Trevor Smith contributed equipment, inventory, and $49,000 cash to a partnership. The equipment had ...

A: Partnership: The form of business entity which is formed by an agreement, owned and managed mutually...

Q: Question 9 Equivalent Units of Conversion Costs The Filling Department of Eve Cosmetics Company had ...

A: Equivalent units: These units are multiplied with the percentage of units which are completed or in ...

Q: ​Kinnane's Fine Furniture manufactures two​ models, Standard and Premium. Weekly demand is estimated...

A: Click to see the answer

Q: 1. What is the multiplier used to calculate a menu item price for the Cost-Multiplier Approach? Stan...

A: “Since you have asked multiple question, we will solve the first question for you. If you want any s...

Q: Dave Ryan is the owner and operator of Ryan's Arcade. At the end of its accounting period, December ...

A: In the above questions we have asked to calculate owner's equity for current year as well as next ye...

Q: A lumber mill bought a shipment of logs for $49,000. When cut, the logs produced a million board fee...

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This bra...

Q: Miguel Corporation budgets fixed expenses of Php250,000: variable expenses of Php180,000 and a sale ...

A: Break-even point: It can be defined as that level of production at which the company incurs no losse...

Q: The following is the adjusted trial balance for Stockton Company. Stockton CompanyAdjusted Trial ...

A: Assets are the tangible or intangible resources that can be converted into cash. These are the basic...

Q: Maxim manufactures a hamster food product called Green Health. Maxim currently has 18,500 bags of Gr...

A: Incremental revenue is the additional sales made due to further processing. Incremental revenue = Sa...

Q: The following relates to a proposed equipment purchase: Cost $160,000 Salvage value 6,500 Estimated ...

A: Computation of Annual Depreciation Expense: Annual Depreciation Expense=Cost-Salvage ValueEstimated ...

Q: Emerson and Dakota formed a partnership dividing income as follows: Annual salary allowance to Emer...

A: Net income: The bottom line of income statement which is the result of excess of earnings from opera...

Q: You are attempting to value a call option with an exercise price of $100 and one year to expiration....

A: Data given:

Q: C. April 1, 2020, Roddick Company incurred $480,000 in an unsuccessful patent defense. As a result o...

A: Patent is an intangible asset, which can not be physically touched but company has incurred cost to ...

Q: Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.40 per unit. Blueb...

A: Net income is the income left to an entity after subtracting all the expenses from the revenue earne...

Q: If a fixed asset, such as a computer, were purchased on January 1 for $2,267 with an estimated life ...

A:   Straight line depreciation : Straight line basis is a method of calculating depreciation. It is ca...

Q: Question 10 Equivalent Units of Materials Cost The Filling Department of Eve Cosmetics Company had 4...

A: Units started and Completed = Total units completed - beginning work in process inventory  = 73,400 ...

Q: The adjusted trial balance columns of the worksheet for Wildhorse Company are as follows. The owner ...

A: Income statement is a part of financial statements of a company. It shows the company’s income and e...

Q: 6. Calculate the Quick Ratio for Company 1 for the year ending 2019.

A:   The quick ratio  offers insight into how well a company can meet its short-term obligations. The q...

Q: The following information pertains to the unadjusted balances for Simple Co. at the end of June. Ac...

A: When bad debt provision is required to be maintained at certain percentage of closing balance, then ...

Q: Question 11   High-Low Method for a Service Company Boston Railroad decided to use the high-low meth...

A: A high low method is used to separate the mixed cost into fixed cost and variable cost. In this meth...

Q: Prepare the Closing entries, Post-closing trial balance, and the Reversing entries please.

A: Closing Entries: It is also known as the closing journal entries. It is prepared at the end of the a...

Q: The County includes an independent school district and two individually chartered towns within the C...

A: Custodial collections are collection received by Government organization on behalf of another entity...

Q: L&P was contracted to construct a building for Rosco at the beginning of 2020. L&P uses the...

A: Click to see the answer

Q: Bramble Corp. spent $11600 to produce Product 89, which can be sold as is for $15000, or processed f...

A: Sunk costs are either past costs or either the future costs that shall be incurred irrespective of t...

Q: On the first day of the fiscal year, a company issues a $920,000, 7%, five-year bond that pays semia...

A: When the bonds will issue we receive cash , and we have to pay interest through out its duration bas...

Q: D. On May 31, 2020, Roddick Company paid $3,400,000 to acquire all of the ordinary shares of Bolt Co...

A: Part (i): Amount of goodwill recognized on May 31, 2020: Goodwill= Cost of division-Value of the ide...

Q: Carter Company reported the following financial numbers for one of its divisions for the year; avera...

A: Residual income = Operating income - (Average invested assets*Minimum required rate of return) Opera...

Q: Question 3 Contribution Margin Lanning Company sells 160,000 units at $45 per unit. Variable costs a...

A: Contribution margin: Difference between the sales and the variable costs is called contribution marg...

Q: Concord Corporation is considering the replacement of a piece of equipment with a newer model. The f...

A: A sunk cost is a cost that has been already incurred and can not be changed. This kind of cost is ir...

Q: Use the following financial statements and additional information to prepare the operating, investin...

A: In the above question we have prepared Cash flow statement from indirect method for Derby Company  f...

Q: Question 8 Cost per Equivalent Unit The cost of direct materials transferred into the Filling Depart...

A: Direct materials cost per equivalent unit is computed by dividing the total material costs by the eq...

Q: You must file an IRS form 2553 to tell the IRS that you want to be an S Corporation or in other word...

A: Form 2553 is a legal form to be filed for tax benefits and taken separate corporate status.

Q: Problem 2-9 You have the following information about the activities of ABC Inc. for 2016 Sales 500,0...

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...

Q: Statement 1: Life insurance premiums shall be reported as a deductible expense for financial reporti...

A: Tax is the liability that person owes to the government.

Q: Calculate the Quick Ratio for Company 1 for the year ending 2019.

A: Click to see the answer

Q: Aug. 24: Received $7,600 on the Finley account and wrote off the remainder owed on a $9,000 accounts...

A: Journal entry: Journal is a book of prime entry or a book of original entry in which transactions ar...

Q: Help me fast so that I will give Upvote

A: Dear student, I am answering the first question (h) as per the company policies as I am allowed to a...

Q: The production department of Zan Corporation has submitted the following forecast of units to be pro...

A: Material Cost = Material Quantity * Material price per unit Direct labour cost = Labour hours * Labo...

Q: With specific reference to your career ambitions as a professional accountant, reflect on six (6) wa...

A: Title: Online Clearance framework

Q: Zenith Corporation sells some of its used store fixtures. The acquisition cost of the fixtures is $1...

A: The cash flow statement is helpful for the stakeholders as they can identify the organization's fina...