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Consider the Following Equation:
Total Cost = Fixed Costs ×\times Cost Driver Quantity)
If a Cost Can Be Estimated Using

Question 8

Multiple Choice

Consider the following equation:
Total cost = fixed costs + (cost driver rate ×\times cost driver quantity)
If a cost can be estimated using this equation, it is probably a:


A) fixed cost.
B) variable cost.
C) mixed or semivariable cost.
D) non-linear cost.

Correct Answer:

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