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Fixed costs were mostly associated with administrative cost. Fixed costs include items like rent, utilities and insurance. Variable cost are cost that vary directly with the number of products produced (Ward, 2006). Direct costs are identified with a specific product, department or activity. Indirect cost can not be identified with a specific product.
Cost Descriptors
As a Human Resource manager for a manufacturing company, it is their job to understand the current budget and how cost affects this budget. Cost can be defined as an amount paid or required in payment for a purchase. Costs are decreases in assets or increases in liabilities...
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