Are my answers correct? Please help me! Various costs are associated with runnin

Question

Are my answers correct? Please help me!

Various costs are associated with running a commercial bakery that supplies local coffee shops Required Classify each cost as being either variable or fixed with respect to the quantity of baked goods supplied Also, indicate whether each cost would typically be treated as a direct cost or an indirect cost with respect to the quantity of baked goods supplied To Quantity of Baked Goods Supplied Cost Cost Item Behaviour 1. Account manager's salary 2. Rent on building 3. Flour used in the making of croissants 4. Bakery manager's salary 5. Wages of bakers who are paid on a piecework basis. 6. Depreciation of commercial ovens used in baking 7. Insurance on the building ndirect rect rect ndirect rect rect ndirect Fixed ariable ariable Fixed Variable ariable Fixed

Explanation / Answer

Classification :

Cost itm Cost behaviour To quantity of baked goods supplies 1. Account manager's salary Fixed Indirect 2. Rent on building Fixed Indirect 3. Flour used in the making of croissants Variable Direct 4. Bakery manager's salary Fixed Indirect 5. Wages of bakers who are paid on a piecework basis Variable Direct 6. Depreciation of commercial ovens used in baking Fixed Indirect 7. Inusurance on the building Fixed Indirect

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