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When predicting costs for internal decision-making purposes, will the classification of a cost as either fixed or variable in relation to a firm's activity level
When predicting costs for internal decision-making purposes, will the classification of a
cost as either fixed or variable in relation to a firm's activity level always follow from
what is reflected in the financial statements?
For example, if Netflix records depreciation on a building using the straight-line method (i.e., regardless of activity levels), should the company always treat depreciation as a fixed cost? Explain why or why not.
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