Which of the Following Is an Example of a Fixed

question 177

Multiple Choice

Which of the following is an example of a fixed cost for a fishing company?

• A) The cost of hiring a fishing crew.
• B) The fuel costs of running the boat.
• C) The monthly loan payment on the boat.
• D) The supply of nets, hooks, and fishing lines.
• E) Bait.

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Definitions:

Fully Depreciated

A term used when a fixed asset has been depreciated to its salvage value and no longer carries a cost on the balance sheet except its possible residual value.

Loss on Disposal

Represents the financial loss a company incurs when it disposes of an asset for less than its carrying value.

Accumulated Depreciation

The total depreciation of a fixed asset accumulated up to a specified time, reflecting wear and tear or obsolescence.

Van

A type of vehicle designed for transporting goods or people, characterized by its large cargo or passenger area and commonly used for commercial, logistical, or personal use.