Which of the Following Costs Would Be Incurred Even If

question 93

Multiple Choice

Which of the following costs would be incurred even if no units were produced?

• A) raw material costs
• B) direct labor costs
• C) transportation costs
• D) building rental costs
• E) purchasing costs

---

Definitions:

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan balance.

Non-interest Bearing

A financial term indicating a debt or deposit that does not accrue interest over time, identical in concept to its prior mention but explained with different wording.

Compounded Monthly

A method of calculating interest where the interest earned each month is added to the principal, compounding the amount on which future interest is calculated.

Compounded Semi-annually

The process of adding interest to the principal sum of a loan or deposit on a twice-yearly basis, resulting in interest on interest.