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QUESTION
Which of the following statements is true for a firm that uses "direct" (variable) costing?
Which of the following statements is true for a firm that uses "direct" (variable) costing?
Product costs include "direct" (variable) administrative costs.
Profits fluctuate with sales.
An idle facility variation is calculated by a direct cost system.
The cost of a unit changes because of changes in number of units manufactured.
