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A home nursing agency has contracted with their nurses to see about 5 patients per day at a cost of about $ 5 0 0

A home nursing agency has contracted with their nurses to see about 5 patients per day at a cost of about $500 per day. The agency has a building cost of $10,000 per month with rent. When we determine the costs using the classifications in Chapter 14 we would properly consider this $500 per day as a:
Fixed cost
Direct cost
Sunk cost
Avoidable cos

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