Fixed Costs Are

question 36

Multiple Choice

Fixed costs are:

• A)costs that are not worth the effort to trace to a specific cost object.
• B)costs that change,in total,in direct proportion to changes in activity levels.
• C)always irrelevant.
• D)costs that remain constant,in total,no matter the activity level.

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Definitions:

Nominal Wage Rate

The wage rate paid to employees unadjusted for inflation, representing the amount of money received per unit of time.

Real Wage Rate

The compensation received per hour of work after adjusting for inflation, indicating the actual value of wages.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.

Nominal Wage Rate

The wage rate paid to employees expressed in current dollars, without adjustment for inflation or purchasing power.