Select the Appropriate Cost Behavior for Each of the Costs

question 171

Multiple Choice

Select the appropriate cost behavior for each of the costs listed below.
-sales commissions

• A)variable
• B)fixed

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Definitions:

Sole Proprietorship

A form of business under which one person owns and controls the business.

Unsecured Consumer Debt

Debt that is not backed by collateral and primarily arises from personal loans, credit card expenses, and medical bills.

Bankruptcy Code

A legal framework in the United States that governs bankruptcy procedures and debt resolutions for individuals and businesses.

Reorganization Petition

A legal document filed in bankruptcy proceedings, aiming to restructure a company’s debts and operations rather than liquidate.