Which of the Following Is Probably Considered a Fixed Cost

question 100

Multiple Choice

Which of the following is probably considered a fixed cost, at least in the short run?

• A) The cost of raw materials.
• B) The cost of direct labour expenses.
• C) The company president's salary.
• D) The cost of utilities.
• E) The commissions paid to the sales force.

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Definitions:

Sale Recorded

The process of documenting a sale transaction in the financial books of a company, recognizing revenue.

Deposits in Transit

Funds that have been received and recorded by a company but not yet by its bank.

Bank Reconciliation

Process of verifying the accuracy of both the bank statement and the cash accounts of a business.

Bad Debt Expense

This refers to an expense recognized by businesses to account for invoices that are unlikely to be paid by customers.