Which of the Following Are the Two Basic Types of Leases

question 9

Multiple Choice

Which of the following are the two basic types of leases?

• A) The service lease and the strip lease
• B) The percentage lease and the fixed-rate lease
• C) The incentive lease and the parallel lease
• D) The development lease and the associated lease
• E) The multiplex lease and the single unit lease

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Definitions:

Variable Costs

Costs that vary directly with the level of production or volume of output.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials and labor.

Fixed Cost

Expenses that do not change in proportion to the level of production or business activity.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing in total with activity level but not proportionately.