Fixed Costs Normally Will Not Include

question 150

Multiple Choice

Fixed costs normally will not include

• A) property taxes.
• B) direct labor.
• C) supervisory salaries.
• D) depreciation on buildings and equipment.

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Definitions:

Flotation Costs

The expenses incurred by a company in issuing new securities, including underwriting, legal, and registration fees.

Cost of Equity

The theoretical compensation a company pays to its equity investors for the risk involved in investing in the firm.

Beta

A measure of the volatility, or systematic risk, of a security or portfolio compared to the market as a whole.

Stock Price

The cost of purchasing a share of a company's stock on the stock market.