Question
Cherry Corporation, a manufacturing company, is analyzing its cost structure in a project to achieve some cost savings. Which of the following statements is/are correct?
Cherry Corporation, a manufacturing company, is analyzing its cost structure in a project to achieve some cost savings. Which of the following statements is/are correct?
I. The cost of the direct materials in Cherrys products is considered a variable cost.
II. The cost of the depreciation of Cherrys plant machinery is considered a fixed cost. Cherry uses an accelerated depreciation method.
III. The cost of electricity for Cherrys manufacturing facility is considered a variable cost, even if the cost of the electricity has both variable and fixed components.
Group of answer choices
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