Question: The following costs are labeled fixed or variable according to a typical designation in accounting. Under which circumstances would any of these costs behave in
a. Direct labor—variable.
b. Equipment depreciation—fixed.
c. Utilities (with a minimum charge)—variable.
d. Supervisory salaries—fixed.
e. Indirect materials purchased in given sizes that become spoiled within a few days—variable.
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a Direct labor would be fixed if a union contract limited the companys ability ... View full answer
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