Of the Following Choices, Which One Is a Common Fixed

question 48

Multiple Choice

Of the following choices, which one is a common fixed cost?

• A)profit centre manager's salary
• B)sales clerks' salaries
• C)costs from a central payroll department to create paycheques for a cost centre's employees
• D)depreciation on a responsibility centre's equipment

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Definitions:

Interest-Rate Cost

The expense associated with borrowing funds, expressed as a percentage of the total borrowed amount.

R&D Expenditure

Financial spending devoted to research and development activities by a company or organization.

Imitation

The action of using someone or something as a model and trying to replicate or emulate their behavior, process, or product.

Innovating Firms

Companies that introduce new products, services, or processes, contributing to technological progress and market dynamics.