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    Cornerstones of Cost Management Study Set 3
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    Exam 3: Cost Behavior
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    An Equipment Lease That Specifies a Payment of $8,000 Per
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An Equipment Lease That Specifies a Payment of $8,000 Per

Question 68

Question 68

Multiple Choice

An equipment lease that specifies a payment of $8,000 per month plus $7 per machine hour used is an example of a


A) fixed cost.
B) variable cost.
C) step cost.
D) mixed cost.

Correct Answer:

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