[Felix123]

In managerial accounting - is packing - quality assurance -production facility utilities considered variable cost? Thanks

[morgaine300]

Variable is stuff that is going to go up and down as production changes. i.e. you make one unit, you only have that cost once. But if you make 100, you have that cost for 100 so you have more. Make a million, you have the cost for a million of them, so it's really big.

(Versus fixed, which stay the way they are no matter whether you produce 1 or a million.)

So logically to you, what do you think packing would be? Something like quality control is generally a salaried position, and salaries are fixed costs. Utilities can be either or mixed, depending on the kind of company. With something like that you might have to base it on the type of company it is and what you think it most logically would be. If you're just asking this in general and it's not applied to a specific problem, then you may have to look through the chapter and see how they decide to describe it.