Which of the following is a true classification of types of operational costs?

Question

BlackTom AI · Accepted Answer

The question asks for a true classification of types of operational costs. Since no list of multiple-choice options is provided, we will evaluate the given proposed classifications.
First, consider the proposed classification: Fixed: building rent. This is generally true, because rent is typically a固定 cost that does not change with the level of production or activity in the short term.
Next, Variable: Part time hourly workers. This is also accurate in most contexts, since wages for hourly labor tend to vary with the level of activity or output, making them variable costs.
Then, Semi-variable: Un-scheduled maintenance. Semi-variable (or mixed) costs contain both fixed and variable components. Maintenance can have a baseline (fixed) amount and additional costs that grow with usage or wear, so classifying some maintenance as semi-variable can be reasonable. However, unscheduled maintenance might also be primarily variable if it occurs irregularly in response to failures, or it could be largely fixed if it occurs at a consistent maintenance schedule regardless of activity.
Putting these together, the first two classifications (Fixed for rent and Variable for hourly workers) are standard and solid. The semi-variable classification for unscheduled maintenance is plausible but may not always hold true in every context; the exact nature depends on the business’s maintenance contracts, usage, and maintenance philosophy. In practice, analysts should examine whether maintenance costs have a fixed base versus costs that scale with activity to determine if semi-variable is the best label.
In summary, the proposed classifications are largely correct for typical operational-cost accounting, with the caveat that the semi-variable designation for unscheduled maintenance can vary by situation and may sometimes be classified as variable if there is no fixed base component.

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Which of the following is a true classification of types of operational costs?

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33:390:400:R6 CORPORATE FINANCE Midterm

Which of the following is a true classification of types of operational costs?

View Explanation

Log in for full answers

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