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Explain whether you regard each of the following costs or categories of costs as fixed, variable, or semivariable with respect

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Explain whether you regard each of the following costs or categories of costs as fixed, variable, or semivariable with respect to net sales. Briefly explain your reasoning. If you do not believe that a cost fits into any of these classifications, explain.

a. The cost of goods sold.

b. Salaries to salespeople (these salaries include a monthly minimum amount, plus a commission on all sales).

c. Income taxes expense.

d. Property taxes expense.

e. Depreciation expense on a sales showroom, based on the straight-line method of depreciation.

f. Depreciation expense on a sales showroom, based on the double-declining-balance method of depreciation.


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a Variable The cost of goods sold normally rises and falls in almost direct proportion to changes in net sales Although fixed manufacturing overhead i…View the full answer


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Related Book For  answer-question
Financial and Managerial Accounting the basis for business decisions

Financial and Managerial Accounting the basis for business decisions

ISBN: 978-0078111044

16th edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

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Question Details
Chapter # 20
Section: Brief Exercises
Problem: 2
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Question Posted: April 17, 2014 10:58:14
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