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Below Are Several Examples of Costs That Are Labeled Fixed

Question 119

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Below are several examples of costs that are labeled fixed or variable according to their typical accounting designations. Under which circumstances would any of these costs behave in a manner opposite to that listed?
a. Direct labor-variable.
b. Equipment depreciation-fixed.
c. Utilities (with a minimum charge)-variable.
d. Supervisory salaries-fixed.
e. Indirect materials purchased in given lot sizes that become spoiled within a few days-variable.

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a.Direct labor would be fixed if a union...

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