A beverage manufacturer pays a flat fee of $100 per month to have access to city water.

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A beverage manufacturer pays a flat fee of $100 per month to have access to city water. In addition, the manufacturer pays $5 per every 10,000 gallons used. In what way should this cost be categorized?

Related Book For answer-question

Cost Accounting A Managerial Emphasis

ISBN: 978-0133428704

15th edition

Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

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Posted Date: Mar 17, 2024 12:11 PM

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A beverage manufacturer pays a flat fee of $100 per month to have access to city water.

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Expert Answer:

This cost should be categorized as a mixed or semivariable cost Heres ... View the full answer

Cost Accounting A Managerial Emphasis

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