Which of the Following Is the Best Example of a Fixed

question 206

Multiple Choice

Which of the following is the best example of a fixed cost for a business?

• A) the insurance payment for the protection of a building owned by the firm
• B) shipping charges for the delivery of products
• C) managerial salaries paid
• D) the total of medical insurance premiums on the firm's employees

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (standard) variable overhead rate multiplied by the actual activity level.

June

The sixth month of the year in the Gregorian calendar, often associated with the start of summer in the northern hemisphere.

Materials Price Variance

A measure of the difference between the actual cost of materials and the standard cost, multiplied by the actual quantity of materials used.

January

January is the first month of the year in the Gregorian and Julian calendars, characterized by cold weather in the northern hemisphere and warm weather in the southern hemisphere.