Which of the Following Is Not Classified as a Fixed

question 47

Multiple Choice

Which of the following is not classified as a fixed product cost?

• A)Machine depreciation
• B)Electricity to run machinery
• C)Factory rent
• D)Production manager's salary

---

Definitions:

Electronic Equipment

Electronic equipment encompasses devices or systems that use electrical power to perform a wide range of functions, including computing, communication, and entertainment.

Accounts Payable

Refers to the amount a company owes to suppliers or vendors for goods and services received but not yet paid for.

Accounting Equation

The fundamental principle of accounting that states assets equal liabilities plus owner's equity (Assets = Liabilities + Owner's Equity).

Asset

Resources owned by a company that have economic value and can provide future benefits, such as cash, inventory, and equipment.