1. The monthly cost of heating our company office is a fixed cost, a CEO says,...

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Accounting

1. The monthly cost of heating our company office is a fixedcost, a CEO says, "because we adjust the thermostat according tothe weather conditions which are beyond our control." Do you agree?Is this a variable cost? Explain your ground concisely.

2. At Q company, the annual depreciation expenses for theproduction equipment are computed under an accelerated depreciationmethod, resulting in annually changing depreciation amounts. withrespect to the production volume, the depreciation amount totallevel is a ____ cost. Then, explain your ground conciselybelow.

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Answer 1 The monthly cost of heating the company office is a fixed cost It is a fixed cost not because it is adjusted based on weather conditions which are beyond human control as stated by CEO It is a fixed cost because it does not vary with the production volume Variable costs increase or    See Answer
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