Which of These Is a Typical Example of a Variable

question 65

Multiple Choice

Which of these is a typical example of a variable cost?

• A) shipping costs
• B) rent on a building
• C) executive salaries
• D) insurance premiums
• E) leases on delivery trucks

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Definitions:

Issuance of Bond

The process through which a bond is created and sold to investors, thus raising capital for the issuer.

Financing Activities

Transactions that result in changes to the size and composition of the equity capital or borrowings of an entity.

Issued Common Stock

Equity shares that have been distributed to shareholders by the company.

Cash Dividends

are payments made by a corporation to its shareholders from profits in the form of cash, reflecting a portion of the corporate earnings being distributed.