Question: Looking for help to distinguish between fixed and variable costs. Other fixed manufacturing overhead and fixed selling and administrative expenses are allocated to products based
Looking for help to distinguish between fixed and variable costs.
- Other fixed manufacturing overhead and fixed selling and administrative expenses are allocated to products based on the number of units sold - should this be variable cost?.
- Depreciation is also allocated to products based on their relative proportion of total direct labour dollars - is this fixed or variable?.
- Engineering and quality control are allocated to products based on their relative proportion of total direct labour dollars - is this fixed or variable?
Thanks
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