Classify items on the basis of behaviour to change in level of activity

Classify the following items on the basis of behaviour to change in level of activity:
[April – 08]
(i) Office insurance charges.
(ii) Customs duty on raw material.
(iii) Cost of raw material.
(iv) Managers salary.
Soln:
(i) Fixed Cost
(ii) Variable Cost
(iii) Variable Cost
(iv) Fixed Cost

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