Classify And Assign Costs Practice Test

A service company provides tax preparation and hires seasonal preparers each spring. Preparers are paid $28 per return completed, while the office lease is $6,000 per month and stays the same year-round. For budgeting seasonal staffing costs, which cost classification is most appropriate for the preparers’ $28-per-return compensation?

A service company provides home cleaning and schedules additional crews during summer demand. Cleaners are paid $16 per hour, and the company pays a fixed monthly fee for scheduling software of $900 regardless of jobs. Which cost classification is most appropriate for the scheduling software fee?