When a Small Retail Chain Hires an Accountant to Do

question 255

Multiple Choice

When a small retail chain hires an accountant to do its income taxes, the retail chain would have purchased

• A) an ancillary service.
• B) an industrial service.
• C) a specialty service.
• D) an accessory service.
• E) a contractual service.

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Definitions:

Property Taxes

Taxes levied by local governments based on the assessed value of real estate property owned by individuals or businesses.

Fixed Cost

A cost that does not change with an increase or decrease in the quantity of goods or services produced or sold.

Accounting Salaries

The wages or salaries paid to employees working in the accounting department, reflecting the cost associated with managing financial records and reports.

Fixed Cost

Expenses that do not change with the level of production or sales activities, such as rent, salaries, and insurance premiums.