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Question
Kohler Manufacturing typically achieves one of three production levels in any given year: 8 million pounds of steel, 10 million pounds of steel, or 16 million pounds of steel. In tracking some of its costs, Kohler's controller discovered one cost that was $10 per pound no matter what the production level for the year. This is an example of aA) variable cost.
B) fixed cost.
C) semivariable cost.
D) semifixed cost.
Answer
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