Which of the Following Is Not a Fixed Cost

question 3

Multiple Choice

Which of the following is not a fixed cost?

• A) Direct materials
• B) Depreciation
• C) Lease charge
• D) Property taxes

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Definitions:

Common Shares

Equity investments that represent ownership interests in a corporation, entitling holders to dividends and voting rights.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from total revenue.

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.

Preferred Shares

A class of ownership in a corporation that has a higher claim on its assets and earnings than common shares, often receiving dividends before common shareholders.