Answered: Explain why is variable cost said to…

Explain why is variable cost said to constant and fixed costs are said to fluctuate in relation to production? And what determines over and under absorption in production?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 17MC: In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs...

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Explain why is variable cost said to constant and fixed costs are said to fluctuate in relation to production? And what determines over and under absorption in production?

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