Which of the following statements is NOT true when using analysis at the account level to estimate a cost function:
A) Salaries are usually fixed.
B) Manufacturing overhead is usually treated as a mixed cost.
C) Materials used in production are usually variable.
D) Maintenance on the buildings and facilities is usually treated as variable.

Question

Quizplus · Accepted Answer

Maintenance on buildings and facilities is typically treated as a fixed cost, not variable. This is because the cost does not change in direct proportion to the level of production or sales volume.

Which of the Following Statements Is NOT True When Using