Question
Direct costs is considered more accurate than indirect costs, do you agree? Explain and discuss with examples. [ 3 Marks] 2- If a company sells
Direct costs is considered more accurate than indirect costs, do you agree? Explain and discuss with examples. [ 3 Marks]
2- If a company sells multiple products, to calculate the breakeven point for each product, its unit contribution margin must be weighted by the sales mix? Why? Discuss with examples [3 Marks]
3- Classify each of the following cost items as:
Direct or indirect (D or I) costs with respect to a video section of a corporation
Variable or fixed (V or F) costs with respect to how the total costs of the video section change as the number of videos sold changes.( if in doubt, select on the basis of whether the total costs will change substantially if there is a large change in the number of videos sold.)
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