Which of the Following Is an Indirect Fixed Cost

question 1

Multiple Choice

Which of the following is an indirect fixed cost?

• A)Depreciation on a profit centre's machinery
• B)Depreciation on the company's building which houses several profit centres
• C)Health insurance costs for employees
• D)Profit centre supervisory salaries

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Definitions:

Collective Bargaining

The process of negotiating employment terms between an employer and a group of employees, often represented by a union, to reach a labor agreement.

Labour Relations Board

A governmental body responsible for overseeing and enforcing labor and employment laws, including mediating disputes.

Compulsory Arbitration

A mandatory process where disputing parties must submit their conflict to arbitration, an alternative dispute resolution method, instead of going through the court system.

Right To Strike

The legal right of workers to cease work in order to gain concessions from their employer, such as higher pay or improved working conditions.