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Boca manufactures LX and RX stereo systems in Southern Ontario. Boca incurs various costs both...

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Question

Accounting

Boca manufactures LX and RX stereo systems in Southern Ontario. Boca incurs various costs both in producing these stereos and in the operations of the company. Classify each of the following cost items according to the terms. A cost can be classified under more than one category. If in doubt, select the cost type based on whether the total costs will increase substantially if a large number of stereo systems are produced.

Variable cost

Fixed cost

Direct cost

Indirect cost

Product cost

Period cost

Design of LX stereo

Plant Janitor

Machine Amortization

Factory maintenance

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