A Supervisor's Salary of £2,000 Per Month Is an Example

question 48

Multiple Choice

A supervisor's salary of £2,000 per month is an example of a

• A)fixed cost.
• B)variable cost.
• C)step cost.
• D)mixed cost.

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Definitions:

Cost Per Equivalent Unit

A calculation used in process costing, dividing total production costs by the number of units produced, accounting for partially completed units.

Process Costing

A costing method used when identical or similar goods or services are produced in mass quantities, assigning costs to units of product based on the process they go through.

Processing Departments

Specific areas or divisions within a manufacturing facility where distinct stages of production are carried out.

Cost Reconciliation

The process of matching and comparing costs from multiple sources of data to ensure consistency and accuracy in financial records.