Which of the Following Is an Example of a Fixed

question 73

Multiple Choice

Which of the following is an example of a fixed cost that is also a sunk cost for a bakery as of January 15?

• A)The electric bill for the coming calendar year.
• B)An accountant's fees for tax preparation in April.
• C)The cost of a one-year lease on a building, signed January 1.
• D)The salary of the baker for the month of February.

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Definitions:

Personal Concerns

Matters or issues that are primarily related to an individual's private interests, well-being, or personal circumstances.

Agent

A person or entity legally authorized to act on behalf of another person or entity in financial or business matters.

Indemnify

To compensate for harm or loss, typically through financial payment, or to guarantee protection against legal liability or penalties.

Losses

Financial or material detriment experienced by an entity, often due to business operations or market conditions.