Select the Appropriate Cost Behavior for the Following Costs Incurred

question 164

Multiple Choice

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer.
-cost of transporting cars to dealerships

• A)variable
• B)fixed

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Definitions:

Legal Obligations

Duties enforced by law that a person or entity is required to fulfill.

Ratify

To officially approve or confirm, often used in the context of formalizing agreements or treaties.

Letter-Of-Credit

A financial instrument issued by a bank guaranteeing a buyer's payment to a seller, providing security in international trade transactions.

Formal Contract

A legally binding agreement, often in written form, that explicitly outlines the terms and conditions agreed upon by the parties involved.