Fixed Production Costs Are

question 67

Multiple Choice

Fixed production costs are:

• A)directly related to labour costs.
• B)measured as cost per unit of time.
• C)measured as cost per unit of output.
• D)dependent on the amount of goods or services produced.
• E)None of the above.

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Definitions:

Dependency Exemption

A tax exemption for taxpayers who support dependents who cannot fully support themselves.

Straight-Line Depreciation

A technique for distributing the expense of a physical asset evenly across its lifespan in yearly increments.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life to account for declines in value.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired, reducing its book value on the balance sheet.