Select the Appropriate Cost Behavior for Each of the Costs

question 41

Multiple Choice

Select the appropriate cost behavior for each of the costs listed below.
-rental cost of warehouse

• A)variable
• B)fixed

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Definitions:

Incremental Value

The additional value created by a new investment or project, compared to the scenario without it.

Equity-Financed

A method of raising capital whereby a company issues new shares of stock and receives fresh capital in return but does not incur debt.

Value Per Share

The amount of money that would be received for each share of stock if all of a company’s assets were sold at their exact book value.

Incremental Value

The additional value created by undertaking a particular action, project, or investment, compared to not doing so.