Which of the Following Would NOT Be Considered a Fixed

question 50

Multiple Choice

Which of the following would NOT be considered a fixed cost of production?

• A) Wages paid to labor
• B) The opportunity cost of capital
• C) Interest payments on a loan
• D) Insurance payments on plant and equipment

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Definitions:

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, often reinvested into the business.

Repurchase Shares

the act of a company buying back its own shares from the marketplace, reducing the amount of outstanding stock.

Corporate Board

A body of persons chosen by stockholders to supervise and make key decisions for a company's management.

Policy

A deliberate system of principles to guide decisions and achieve rational outcomes, often enacted by an organization or government.