The cost of $0.05 each for tamper-evident bottle closures is best described as variable and direct.
Variable Cost:This cost varies with the production volume. As the number of bottles produced increases, the total cost of closures increases proportionally.
Direct Cost:This cost can be directly attributed to the production of each bottle. It is a specific, identifiable expense that is incurred per unit of output.
References:
Horngren, C.T., Datar, S.M., & Rajan, M. (2014). Cost Accounting: A Managerial Emphasis. Pearson.
Drury, C. (2018). Management and Cost Accounting. Cengage Learning.
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