Variable Costs Fixed Costs

Direct Material Rental Expense

Direct Labor Interest Expense
Variable Overhead Insurance Expense
Factory Supplies Executive Salaries
Indirect Materials Depreciation Expenses
Indirect Labor Patent Amortization
Repairs Real Estate
Variable expenses Property Taxes
Delivery Expenses Salaries of production executives
Salesmens Commission
Packaging Costs Advertising Expenses
Supplies Research and Development Costs
Executive Training Costs
Salaries of security guards and janitors
Repairs and Maintenance of building and
grounds

Bold Discretionary Fixed Costs

Italic Committed Fixed Costs

Direct product Indirect product Direct segment Indirect segment

unavoidable
allocated
Direct Material Factory Overhead Salaries of a Salaries of executives
department manager in the central office
Direct Labor Salaries of personnel Other central
assigned to the administrative costs
department Advertising
Systems
review and
development
Real estate
property taxes
Allocated
depreciation of
non-current
assets
Supplies purchased Rent
and used Depreciation
Rental of equipment Interest
directly used in Property taxes
departmental activities All other committed
fixed costs
Utilities which are
directly identified with
a department
Telecommunications
Indirect materials
Indirect labor
Depreciation of
equipment used in the
department