Additional Information: Eddison Electric Company (EEC) provides electricity for several states in the United States. You have been employed as a cost accountant at this organization. As EEC’s corporate business cost accountant, you will need to have a clear understanding of the different types of costs (variable, fixed, mixed, direct materials, direct labor, and overhead) that the company carries.
With your classmates, please discuss the following:
- Describe the differences between variable, fixed, and mixed costs, and list an example of each.
- Describe the differences between direct labor, direct material, manufacturing overhead, and nonmanufacturing costs, and list an example of each.