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      Question

      Which of the following correctly describes the nature of

      a plant manager’s salary?
      A Direct cost Correct Answer Incorrect Answer
      B Indirect Cost Correct Answer Incorrect Answer
      C Period Cost Correct Answer Incorrect Answer
      D Both a and b Correct Answer Incorrect Answer
      E Nether of the above Correct Answer Incorrect Answer

      Solution

      Since it is a fixed cost and is not directly related to each unit of individual unit of production, it would be an indirect cost.

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