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A Manager Determined That Certain Costs Were NOT Responsive to Changes

question 92

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A manager determined that certain costs were NOT responsive to changes in activity level.What are these costs?


Definitions:

Economic Values

The worth of goods or services as determined by the market or the intrinsic importance or utility they offer to individuals.

Compounded Monthly

Interest on a loan or investment calculated monthly and added to the principal sum for the calculation of subsequent interest.

Compounded Annually

Interest calculation and accumulation once per year on the principal amount of an investment or loan.

Compounded Quarterly

Interest calculated four times a year, applying on the original principal and including interest accumulated in previous periods.

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