Which of the Following Would Not Be Considered a Fixed

question 160

Multiple Choice

Which of the following would not be considered a fixed cost for a law firm?

• A)paper for the photocopy machine
• B)property taxes
• C)insurance premiums
• D)license fees
• E)interest on loans

---

Definitions:

Direct Method

A method of preparing the cash flow statement where actual cash flow information from the company's operations is used, as opposed to indirect method adjustments.

Operating Cash Receipts

Money received by a company from its operational activities, such as sales of goods or services.

Accumulated Depreciation

The total amount of depreciation expense recorded for an asset, reducing its book value over time.

Equipment Costing

The process of tracking and analyzing the costs associated with the purchase and maintenance of equipment.