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In: Accounting

An example of a cost likely to have a fixed behavior pattern is: a) sales commission....

An example of a cost likely to have a fixed behavior pattern is: a) sales commission. b) production labor wages. c) insurance expense. d) shipping cost for packaging equipment.

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Expert Solution

An example of a cost likely to have a fixed behaviour pattern is : c) Insurance expense.

Insurance is for coverage of any property, plant and equipment for a given period of time and is most of the times fixed in nature. On the other hand, sales commission varies with sales, production labor wages varies with hours and shipping cost varies with the units shipped .


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