Which of the Following Costs Are Most Likely to Be

question 163

Multiple Choice

Which of the following costs are most likely to be classified as variable?

• A)Factory rent
• B)Manager salaries
• C)Insurance
• D)Direct materials
• E)Straight-line depreciation

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Definitions:

Common Stock Subscribed

An agreement by investors to purchase common stock from a company, indicating the investors' commitment to buy shares at a future date.

Subscriptions Receivable

Amounts owed by customers for subscription services that have been billed but not yet paid.

Stock Warrants

Certificates granting the holder the right to purchase shares of stock at a specified price before a set expiration date.

Option Price

The price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.