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Advanced Technical Services Ltd

Question 90

Essay

Advanced Technical Services Ltd., has many products and services in the medical field. The Clinical Division of the company does research and testing of consumer products on human participants in controlled clinical studies.
Required:
Determine for each cost below whether it is best classified as a fixed, variable, or step-fixed cost.
(1) Director's salary
(2) Part-time help
(3) Payment on purchase of medical equipment
(4) Allocation of company-wide advertising
(5) Patches used on participants' arms during the study
(6) Stipends paid to participants

Correct Answer:

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(1) Fixed (2) Variab...

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