Fixed Costs Are Fixed with Respect to Changes In

question 117

Multiple Choice

Fixed costs are fixed with respect to changes in:

• A) output.
• B) capital expenditure.
• C) wages.
• D) time.

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Definitions:

Total Revenue

The gross income generated from the core business activities of a company, including the sale of products and services.

Liability

Debts or monetary commitments that a firm has to settle with others, requiring the provision of economic benefits such as cash, products, or services over a period.

Expense

Costs incurred by a business in the process of earning revenue, typically categorized as fixed, variable, or periodic.

Accrual

Accrual is an accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.