Variable costs include:
Materials used
Direct labor
Packaging
Freight
Plant supervisor salaries
Utilities for a plant or a warehouse
Depreciation expense on production equipment
Machinery
Fixed costs generally are more static in nature. They include:
Office expenses such as supplies, utilities, a telephone for the office, etc.
Salaries and wages of office staff, salespeople, officers and owners
Payroll taxes and employee benefits
Advertising, promotional and other sales expenses
Insurance
Auto expenses for salespeople
Professional fees
Rent.
|