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2 - 2 7 Variable and fixed costs. Accounting firm Weetman, Doemen, & Co conducts a variety of activities for small and medium ( SM
Variable and fixed costs. Accounting firm Weetman, Doemen, & Co conducts a variety of activities
for small and medium SM firms. The number of employees on January was Due to frequent
mergers and acquisitions, a lot of SM firms are taken over. The consequence of this is that the accountant
of the larger firm also provides services to the merged SM firm.
As Weetman, Doemen, & Cos clients consist mainly of SM firms, business has decreased. The
acquisition of new clients andor increasing business with existing clients hasnt had any results. Weetman,
Doemen, & Co was forced to decrease its number of employees, mainly through natural outflow, and by the
end of the number of employees was When the contract of an employee is terminated, a notice
period of two months must be taken into account. In January and February no employees were notified
to leave the company.
Are the labor costs concerning the month of March fixed or variable?
Are the labor costs concerning the period between January and March fixed or variable
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