Rent of $10,000 Paid Per Month for Renting a Building

question 107

Multiple Choice

Rent of $10,000 paid per month for renting a building is an example of a(n) :

• A)fixed cost.
• B)variable cost.
• C)opportunity cost.
• D)marginal cost.

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Definitions:

Customer Cost Analysis

A process of determining the total cost incurred by a business to serve a customer, including all direct and indirect expenses.

Time-Driven Activity-Based Costing

An approach to activity-based costing that assigns resource costs directly to products or services based on the estimated time required for each activity.

Customer Service Department

A division within a company that handles inquiries, complaints, and support requests from customers.

Capacity Analysis

Calculating the production capacity an organization needs to fulfill the dynamic demands for its products.