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Question

3.

Variable costs

are always indirect costs.

increase in total when the actual level of activity increases.

include most personnel costs and depreciation on machinery

can always be traced directly to the cost object.

b.

S

Answer

Variable costs increase in total when the actual level of activity increases and include most personnel costs and depreciation on machinery, but cannot always be traced directly to the cost object.

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Variable costs are always indirect costs, meaning they cannot be traced directly to the cost object. They increase in total when the actual level of activity increases,...