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The Parker Cellular Company Is Charged a Total Cost That

Question 12

Multiple Choice

The Parker Cellular Company is charged a total cost that changes in proportion to the number of minutes used.The number of minutes used is the only factor that causes a change in total cost.How would the managerial accountant classify total costs of phone charges?


A) Fixed.
B) Mixed.
C) Variable.
D) Fixed cost in the relevant range.
E) Mixed cost in the relevant range.

Correct Answer:

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