If Each Furnace Required a Hose That Costs $20 and 2,000

question 169

Multiple Choice

If each furnace required a hose that costs $20 and 2,000 furnaces are produced for the month, the $40,000 total cost for hoses

• A)is considered to be a direct fixed cost.
• B)is considered to be a direct variable cost.
• C)is considered to be an indirect fixed cost.
• D)is considered to be an indirect variable cost.
• E)is considered to be variable or fixed, depending on the relevant range.

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