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How should reply if are the cost accountant

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Reference no: EM132992763

Problem 1: The company's CEO was presented with a graph that depicted the company's utility cost as semi-variable. The CEO commented that the fixed-cost component does not look right to him. He proceeded by saying, "if the company shut down the plant for six months, the company would not incur half of these costs." If you are the cost accountant, how should you reply? Support your answer.

Reference no: EM132992763

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