Fixed Costs Normally Will Not Include

question 150

Multiple Choice

Fixed costs normally will not include

• A) property taxes.
• B) direct labor.
• C) supervisory salaries.
• D) depreciation on buildings and equipment.

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Definitions:

Indirect Costs

Expenses not directly tied to the production of goods or services, such as overhead costs.

Machinery Setup

The process of assembling, configuring, and preparing machinery for operational use in manufacturing or industrial settings.

Cost Labels

Designations or categories used to identify, track, and analyze costs, helping in understanding their nature and how they should be managed.

Direct Materials

The raw materials that are directly traceable to the production of a specific product.