Which of the Following Is an Example of a Variable

question 34

Multiple Choice

Which of the following is an example of a variable cost for a retailer of electronic equipment?

• A) The display tables for mounting the computer, monitor, and printer
• B) The cost associated with the free pack of paper for every computer printer sold
• C) The store rent charged by the mall
• D) The cost of obtaining the licenses required by the local government
• E) The cost of manufacturing the electronic equipment

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to run its day-to-day operations.

Income Tax Expense

The amount of money a company owes in taxes based on its net income.

After-Tax Discount Rate

The interest rate used to discount future cash flows to their present value, adjusted to account for taxes.

Straight-Line Depreciation

A method for allocating an asset's cost evenly across its useful life.