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The following are some of the costs of a clothing manufacturer. State which among them will you consider as fixed cost? |
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Answer» Depreciation on machines owing to time Depreciation on machines owing to time is CONSIDERED as fixed cost. Depreciation is a fixed cost, because it RECURS in the same amount per PERIOD throughout the useful LIFE of an asset. Depreciation cannot be considered a variable cost, since it does not vary with activity volume. However, there is an exception. |
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