Which of the Following Would Not Be an Example of a Cost

question 40

Multiple Choice

Which of the following would not be an example of a cost to include in a selling and administrative expense budget?

• A)Legal expenses
• B)Accounting services
• C)Fixed manufacturing overhead
• D)Franchise fees

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Definitions:

Agricultural Futures

Contracts to buy or sell agricultural commodities at a predetermined price at a specified time in the future, used for hedging or speculating on the price movement of these commodities.

Actively Traded

Describes securities or assets that are frequently bought and sold, indicating high trading volume.

Orange Juice

A commodity traded on futures markets, representing frozen concentrated orange juice.

Futures Contracts

Legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.