A Company Must Make Payments Each Month for Rent, Heat

question 86

Multiple Choice

A company must make payments each month for rent, heat, interest, and salaries. These are ________.

• A) total costs
• B) fixed costs
• C) variable costs
• D) opportunity costs
• E) target costs

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Definitions:

Freight Costs

Charges incurred for transporting goods between places, typically included as part of the cost of goods sold or inventory.

FOB Destination

A shipping term meaning the seller retains the risk and ownership of goods until they are delivered to the buyer's location.

Freight Charges

Costs associated with transporting goods from one place to another, often paid by the buyer or seller depending on terms of sale.

Perpetual Inventory System

An inventory tracking system that updates item balances after each purchase or sale, providing a continuous record of inventory.