Costs That Are Incurred No Matter How Many Units of a Product

question 65

Multiple Choice

Costs that are incurred no matter how many units of a product are produced or sold are called

• A) operating expenses.
• B) overhead.
• C) variable costs.
• D) fixed costs.
• E) inflexible costs.

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Definitions:

Corporations Act

The Corporations Act 2001 is Australian Commonwealth legislation that covers many aspects of the operations of Australian companies, including requiring certain types of entities to prepare financial statements.

Winding Up

The process of dissolving a company, where its assets are liquidated to pay off creditors, and any remaining assets are distributed among shareholders.

Just and Equitable

Principles guiding courts in making decisions that are considered fair and reasonable under the given circumstances.

Declaration of Solvency

A formal statement made by the directors of a company declaring that the company can meet its debts as they fall due.