Variable, Fixed and Mixed Manufacturing Costs of Snap-On Incorporated

Select a public (i.e. one that publishes its financial information) manufacturing company and become familiar with its products. Describe the company, its products, and the specific manufacturing costs it incurs. Categorize each cost into the three manufacturing cost categories and state if the costs are variable, fixed, or mixed. Explain how you came to your conclusions. It is vital, and required, of public companies to disclose certain financial statements to the public; the level of detail provided by public companies is dependent on their financial team. I have chosen to research Snap-On Incorporated to analyze the financial statements they have provided in their latest public financial reports of fiscal year 2020. These financial reports include variable, fixed and mixed manufacturing costs. Variable costs refers to those costs that will vary in direct proportion to changes in the level of an activity, such as direct material, direct labor, sales commissions, etc. Fixed costs are somewhat of the opposite to variable costs in that these costs do not fluctuate with changes in the level of activity, they include rent of property or equipment, insurance expense, depreciation, utilities, some salaries, etc. Mixed costs refers to those costs that consist of both variable and fixed components, this means that these costs include a fixed amount plus a variable component.