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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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