Fixed Cost Is

question 410

Multiple Choice

Fixed cost is

• A)the cost of producing one more unit of capital, for example, machinery.
• B)any cost that does not change when the firm changes its output.
• C)average cost multiplied by the firm's output.
• D)usually zero in the short run.

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Definitions:

Periodic Inventory System

A method of inventory management where updates to inventory levels are made at specific intervals, typically at the end of an accounting period, rather than continuously.

Inventory Shipped on Consignment

Goods sent by a vendor (consignor) to a consignee, which are held by the consignee until sold; the consignor retains ownership until the goods are sold.

Consignee

The individual or entity that is legally permitted to receive goods but does not have ownership rights over the cargo until the consignment is paid for or sold.