All of the Following Are Examples of Variable Operating Expenses

question 1

Multiple Choice

All of the following are examples of variable operating expenses, except:

• A) Advertising and promotion expenses
• B) Wages and salaries
• C) Insurance premiums
• D) Delivery expenses

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Definitions:

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows over a period of time.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Residual Value

The estimated value of an asset at the end of its useful life.