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in reference to chapter 8 2nd video lecture, are factory heat, factory canteen expenses, welfare costs of factory employees fixed production overheads or variable production overheads?
Can I ask how are they fixed overheads? because we have studied that any expenses incurred on variable factors are variable costs and here factory canteen expenses, welfare costs of factory employees are expenses incurred on labor, which is a variable factor
Variable costs for Paper MA are costs that vary with the level of production. The costs that you refer to in this example do not vary with the level of production.
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