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:

Indirect Approach

A method often used in preparing cash flow statements where net income is adjusted for non-cash transactions and changes in working capital.

Investing Activities

Transactions involving the purchase and sale of long-term assets and investment securities, as part of a company’s cash flow activities.

Financing Activities

Transactions involving raising capital and repaying investors, including issuing equity or debt, and dividend payments.

Common Stock

Equity ownership in a corporation, with voting rights and potential dividends, not having preference over preferred stock in bankruptcy proceedings.