Which of the Following Is the Best Example of Fixed

question 25

Multiple Choice

Which of the following is the best example of fixed costs?

• A)Rent for an office
• B)Overtime wages for workers
• C)Costs of material supplies
• D)Fuel used to operate an equipment
• E)Costs for product packaging

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Definitions:

Differential Analysis

An approach to decision making that focuses on the costs and benefits that change between decision alternatives.

Income Change

A variation in the amount of earnings a business generates over a period.

Alternative Course

A different plan or method that could be chosen instead of the original or current one.

Theory of Constraints

A management philosophy focusing on identifying and managing the most limiting factor (constraint) that stands in the way of achieving a goal.