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An employee could be a batch cost, a variable or a common cost. True O False

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Answer #1

A). True

In case of batch costs, the production of a specific type is done in one batch and it includes material, labor and other costs. Variable costs vary with the level of output and again they include labor costs. Common are those costs that cannot be allocated individually to units or cost centers like watchmen salary. All these costs clearly show that an employee can be a batch, variable or common cost.

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