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Which one of the following is a false statement when engaged in bilateral netting?
Variable Cost
Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.
Fixed Cost
Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums.
Variable Cost
Costs that change in proportion to the level of production or business activity.
Fixed Cost
Costs that do not change with the level of production or business activity, such as rent, salaries, and insurance.
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