Select the Appropriate Cost Behavior for Each of the Costs

question 180

Multiple Choice

Select the appropriate cost behavior for each of the costs listed below.
-real estate taxes

• A)variable
• B)fixed

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Definitions:

Issue Bonds

The act of a corporation or government borrowing money from investors by selling them bond securities.

Sold For

Refers to the final price at which a product, asset, or service is sold to a buyer in a transaction.

Bond Premium

The additional amount over the face value that investors are willing to pay for a bond, typically because it offers a higher interest rate than the prevailing market rate.

Annual Interest Payment

The total amount of interest to be paid each year on a loan, bond, or other financial instrument.