Chips Co., maker of computers, incurred the following cost during the year. Is thefollowing cost item a fixed or variable cost?Boxes used to package the completed computersVariableFixed Chips Co., maker of computers, incurred the following cost during the year. Is thefollowing cost item a fixed or variable cost?Utility bill for the factoryVariableFixed

Answered: Chips Co., maker of computers, incurred…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter15: Lean Accounting And Productivity Measurement

Section: Chapter Questions

Problem 2CE: During the week of June 12, Harrison Manufacturing produced and shipped 15,000 units of its aluminum...

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Chips Co., maker of computers, incurred the following cost during the year. Is the
following cost item a fixed or variable cost?
Boxes used to package the completed computers
Variable
Fixed

Chips Co., maker of computers, incurred the following cost during the year. Is the
following cost item a fixed or variable cost?
Utility bill for the factory
Variable
Fixed

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The term "fixed cost" refers to a cost that remains constant regardless of the number of goods or services produced or sold. Fixed costs are expenses that a business must pay regardless of its specific business activities. This means that fixed costs are typically indirect, in the context that they do not apply to a company's production of goods or services. Companies usually have two types of costs: fixed costs and variable costs, which combine to form total costs.

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