Which of the Following Would Probably Be a Committed Fixed

question 17

Multiple Choice

Which of the following would probably be a committed fixed cost for an accounting firm?

• A)lease of computers
• B)rent on the office building
• C)property taxes on building
• D)all of these are correct

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Definitions:

Period Costs

Expenses that are not directly tied to production activities and are instead charged to the periods in which they occur, such as selling, general, and administrative expenses.

Income Statement

A financial statement that reports a company's financial performance over a specific period, showing revenue, expenses, and net income.

Factory Overhead

Factory overhead refers to the indirect manufacturing costs not directly tied to the production of a specific product, such as utilities, depreciation, and maintenance of equipment.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time.