Which of the Following Is Most Likely to Be a Fixed

question 99

Multiple Choice

Which of the following is most likely to be a fixed cost for a business?

• A) expenditures on low-skill labor.
• B) shipping charges for the delivery of products.
• C) materials costs.
• D) property taxes on the firm's buildings.

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Definitions:

Franchise

A licensing arrangement granting an individual or group the rights to market a company's goods or services within a certain territory.

Fixed Commission

A set fee or percentage of a transaction's value paid to agents or brokers for their services.

Sales Agents

Individuals or entities that are authorized to sell products or services on behalf of a company.

Pricing

The strategy or method a business uses to determine the cost to consumers for goods or services.