Which of the Following Is a Typical Example of a Fixed

question 163

Multiple Choice

Which of the following is a typical example of a fixed cost?

• A)raw materials
• B)taxes
• C)sales commissions
• D)building rental expenses

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Definitions:

Sales Taxes

Taxes imposed by governments on the sale of goods and services, typically calculated as a percentage of the sales price.

Transportation Costs

Expenses incurred in the process of moving goods from one location to another, including shipping, freighting, and logistics services.

Cash Terms

Refers to the conditions under which a transaction is made and settled in cash, rather than through credit or financing.

Assessed Valuation

The valuation placed on property by a public tax assessor for purposes of taxation.