Which of the Following Is Unlikely to Be Classified as a Fixed

question 322

Multiple Choice

Which of the following is unlikely to be classified as a fixed cost with respect to the number of units produced and sold?

• A) Property taxes on a headquarters building.
• B) Legal department salaries.
• C) Cost of leasing the company's mainframe computer.
• D) Production supplies.

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Definitions:

Property Rights

Legal rights to possess, use, and dispose of assets, including tangible and intangible property.

Open Ocean

The vast expanse of seawater that is not in close proximity to any landmass, often referred to as the high seas.

Overfishing

The depletion of fish stocks due to fishing at a rate that is unsustainable.

Property Rights

Legal rights to possess, use, and dispose of assets including tangible and intangible properties.