COST ACCOUNTING
COST BEHAVIORS
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Question
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Since Tasty Bread is open 24 hours a day, its bread oven is constantly on and is, therefore, always using natural gas. However, when there is no bread in the oven, the oven automatically lowers its flame and reduces its natural gas usage by 70%. The cost of natural gas would best be described as a:
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fixed cost
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mixed cost
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variable cost
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period cost
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Explanation:
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