Which of the Following Is Not an Indirect Fixed Cost

question 196

Multiple Choice

Which of the following is not an indirect fixed cost?

• A) Company president's salary
• B) Depreciation on the company building housing several profit centers
• C) Company personnel department costs
• D) Profit center supervisory salaries

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Definitions:

Voting Rights

The entitlement of shareholders to vote on company matters, typically exercised at annual meetings or special resolutions, often proportional to the number of shares held.

Stock Splits

A corporate action where a company divides its existing stock into multiple shares to boost the liquidity of the shares.

Par Value Method

A method in accounting for the transaction of shares, where shares are recorded in accounts at their face or nominal value, often used in transactions related to bonds or share capital.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders and holds, reducing the amount of outstanding stock on the open market.