Seymour Clothing Co. manufactures a variety of clothing types for distribution to several major retail chains. Classify the following cost incurred by Seymour in the production and sale of blue jeans as either variable, fixed or mixed cost: Janitorial services, $2,200 per month.
A company's production costs include all those that impact the production activity, directly or indirectly. The direct costs include materials and labor, which are also variable. The indirect costs include manufacturing overhead, which is also variable.
Answer and Explanation: 1
The classification for Seymour Clothing Co.'s cost incurred in the production and sale of blue jeans is made in the following format:
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fromChapter 4 / Lesson 3
Learn the variable and fixed cost definitions and understand these two types of producer costs. Compare fixed vs. variable costs examples and see how they differ.