Expenses That Are Contractual in Nature and Are Normally Paid

question 42

Multiple Choice

Expenses that are contractual in nature and are normally paid every month are

• A) monthly expenses.
• B) automatic expenses.
• C) variable expenses.
• D) accounting expenses.
• E) fixed expenses.

---

Definitions:

Operating Cycle

The period of time it takes for a company to purchase inventory, sell products, and collect cash from customers.

Business Decision

A choice made by a business in pursuit of its objectives, often involving resource allocation.

Material

The raw inputs or supplies used in the manufacturing of goods or products.

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns.