Question
Classify each of the following as fixed or variable costs: $(L O I I-3)$a. Outsourced payroll services.b. Leased offices.c. Company-owned building.d. Payroll taxes.
Step 1
Outsourced payroll services - Variable cost. This cost will vary depending on the number of employees and their salaries. b. Leased offices - Fixed cost. The cost of leasing an office space is typically a set monthly or annual amount, regardless of the level of Show more…
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