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1. What are some examples of fixed costs in a service industry?
2. What are some examples variable costs? What are some fixed costs in manufacturing? What are some examples of each? Do the increase and decrease proportionally within the relevant range?
3. What is the margin of safety? How do you calculate the margin of safety ratio?
4. Is variable costing allowed under GAAP?
5. What are the 2 major categories in absorption costing? How does fixed overhead appear on the income statement when variable costing is used?
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