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Before entering first grade,little Mina used to love to read books.Once school started,her teacher began a program to motivate her students to read.She began to give stars to those children who finished a new book.As a result,Mina no longer reads while she is at home.What has likely occurred?
Fixed Overhead
Indirect costs that do not change with the level of production, such as rent and salaries.
Variable Overhead
Indirect operating costs that vary with the level of production activity, such as utilities and materials.
Direct Labor
The wages or salaries paid to employees who are directly involved in producing goods or services.
Direct Materials
The raw materials that can be directly traced to the manufacturing of a product and are considered a variable cost.
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