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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.

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