Select the Appropriate Type of Fixed Cost for Each Cost

question 199

Multiple Choice

Select the appropriate type of fixed cost for each cost listed below.
-rent of building

• A)discretionary
• B)committed

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Definitions:

Financing Activity

Transactions and events where cash is raised or repaid to investors, such as issuing stock, borrowing money, or paying dividends.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders and are not currently outstanding.

Issuance of Bonds

The process by which a company or government raises capital by selling bonds to investors, which are debt securities obligating the issuer to pay the bondholder a specified sum of money at future dates.

Cash Dividends

Payments made by a company out of its profits to its shareholders in the form of cash.