Which of the Following Is Not an Example of a Fixed

question 65

Multiple Choice

Which of the following is not an example of a fixed cost?

• A) cash withdrawal fee from a bank
• B) monthly rent payment
• C) management salary
• D) hourly labor costs

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Definitions:

Scheduled Payment

A pre-determined amount of money that is paid at regular intervals under the terms of a loan or lease agreement.

Compounded Semi-Annually

Interest on a loan or investment calculated twice a year, adding each interest payment to the principal.

Bond Interest

The interest received by a bondholder, typically paid semi-annually, on the bond's face value.

Equity Mutual Fund

A type of mutual fund that invests primarily in stocks, aiming to provide returns through dividends and capital gains.