Which of the Following Is NOT a Variable Cost of Production

question 86

Multiple Choice

Which of the following is NOT a variable cost of production?

• A) the cost of wood used to produce furniture
• B) the cost of electricity that powers the lighting and computer systems in an office building
• C) the wages paid to nonsalaried employees
• D) the property taxes that are paid to the municipal government for the land a plant sits on

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Definitions:

Transactions

Financial activities involving the exchange of assets, services, or financial instruments between parties.

Transactions

The financial events that affect the financial statements of a business, involving transfers or exchanges of value between two parties.

Current Ratio

An indicator of a business's capacity to meet its obligations due in the next twelve months.

Calculated

Determined by mathematical methods; involving the process of using mathematical or logical techniques to derive a result.