The Relatively Fixed Costs Such as the Costs of Plant

question 65

Multiple Choice

The relatively fixed costs such as the costs of plant and equipment, which do not increase with an increase in the number of units manufactured, are known as _____.

• A)fixed cost of production
• B)fixed cost of supply
• C)fixed cost of demand
• D)fixed cost of scale

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Definitions:

Personal Assets

Personal assets include all property owned by an individual that has value, such as cash, real estate, investments, and personal belongings.

Liabilities

Financial obligations or debts that a company owes to others, recorded on the right side of the balance sheet.

Equity

The rights of the owners of a business.

Stockholders' Equity

Ownership interest reflected by what is left of a company's assets once liabilities have been deducted.