In terms of cost behavior,supervisory salaries and direct labor are classified as
A)fixed and variable,respectively.
B)variable.
C)fixed.
D)mixed and fixed,respectively.

Question

Quizplus · Accepted Answer

Supervisory salaries are typically fixed costs as they remain constant regardless of the level of production. Direct labor is a variable cost as it varies proportionally with changes in production levels. Therefore, choice A correctly classifies supervisory salaries as fixed costs and direct labor as variable costs.

In Terms of Cost Behavior,supervisory Salaries and Direct Labor Are