Which of the Following Is Most Likely to Be a Fixed

question 181

Multiple Choice

Which of the following is most likely to be a fixed cost for any firm?

• A)the monthly electric bill
• B)sales taxes
• C)shipping and postage costs
• D)rent on office space
• E)charitable donations

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Definitions:

Off-Balance-Sheet

Financial obligations or assets not recorded on a company's balance sheet, often due to being contingent or uncertain.

Disposal of a Segment

The act of selling, liquidating, or otherwise eliminating a division or segment of a business.

Income Statement

An income statement is a financial document that details a company's revenues and expenses over a specific time period, culminating in net profit or loss.

Administrative Expense

Costs related to the general operation of a business, including salaries of senior executives, costs of any administrative functions, and other non-sales or production expenses.