If the salaries of engineers are $3000, the salaries of supervisors are $4000 and the equipment leasing cost is $3000, then fixed setup costs will be ___________?
Correct answer: A. $10,000
- A. $10,000
- B. $1,000
- C. $7,000
- D. $4,000
Explanation
Fixed setup costs include all three listed amounts: $3,000 for engineers, $4,000 for supervisors, and $3,000 for equipment leasing. Their total is $10,000.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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