A cost analyst showed the general manager a graph that portrayed the firm's electricity cost as semivariable.

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A cost analyst showed the general manager a graph that portrayed the firm's electricity cost as semivariable. The general manager looked at the graph and said: 'This fixed-cost component doesn't look right to me. If we shut down the plant for six months, we wouldn't incur half those costs'. If you were the cost analyst, how would you respond?
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Management Accounting

ISBN: 9781760421144

7th Edition

Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton

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