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Lesson 1d: Fixed versus Variable Cost

Fixed vs. Variable Costs: Classification Practice

Now you have an opportunity to practice what you've gone through to make sure you understand the concept.

Required: Classify each of the following costs as fixed, variable, mixed, or step with respect to the units of product produced.

  1. Factory maintenance crew salaries
  1. Factory electricity
  1. Factory building straight-line depreciation
  1. Factory machinery units-of-output depreciation
  1. Factory supervisor's salaries
  1. Factory land and building property taxes


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