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Cost object: t-shirt printing service
Cost: additional printing cost for the 40 t-shirts (additional cost as 40 shirts were printed wrongly)
Cost: additional labour cost for the 40 t-shirts (additional labour is needed as 40 t-shirts were printed wrongly)
Questions:
Question 1: Is additional printing cost for 40 t-shirts a fixed cost or variable cost? Why?
Question 2: Is additional labour cost for the 40 t-shirts a fixed cost or variable cost? Why?
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