Accounting Assignment Example | Topics and Well Written Essays - 500 words - 9

Accounting - Assignment Example The company Gulf Craft is engaged in the production and export of sea based vessels such as ships and speed boards. Their fixed cost includes rent for factory and building and salaries paid to staff members who take care of the maintenance of their buildings. Their variable cost comprises of materials used for manufacturing of boats such as cloth and riggings. Their mixed costs includes the cost of transportation that varies depending on the amount of miles that the product needs to be moved and the cost of commission that is paid to middlemen for helping the company sell their products. The company Evian is involved in the production and sale of bottled water. Their fixed cost includes the salaries paid to those who maintain the bottling plants as well as salaries paid to individuals working in finance department. Variable cost includes cost of obtaining or producing more bottles and labels for these bottled with changes in production. Mixed cost includes minimum plus extra money paid for utilization of electricity and cost of commissions paid to employees who are paid a basic minimum salary and commission for their sales. The company named Ircon International Limited is indulged in the activity of engineering as well as constructing the infrastructure and the company specializes in developing transport based infrastructure. The fixed cost of the company includes salaries paid to permanent employees such as employees of human resource department and rents that the company pays to the owner of its offices. The variable costs include the cost of raw materials used in construction such as steel and concrete. The mixed costs include the salaries that the company pays to consultant if consultants are paid on the basis of minimum wage plus consultancy fee paid per hour. The second mixed cost may include the equipment is obtains on rental basis for construction if the equipment owners are paid on the basis of basic fee as