Which of the Following Statements Is More Likely to Be

question 1

Multiple Choice

Which of the following statements is more likely to be true?

• A) Not all business costs can be classified as variable costs or fixed costs; the terms vary with the unit produced or the service provided
• B) The higher the fixed costs, the easier it is to gain a high return on assets
• C) The higher the variable costs, the easier it is to achieve a high gross margin
• D) The higher the fixed costs, the easier it is to achieve a high gross margin

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Definitions:

Primarily Rental

A classification for a property used mainly for rental purposes, affecting tax treatment and deductions.

Plumbing Repair

Refers to the services and actions taken to fix, maintain, or install water, gas, and sewage systems in residential or commercial properties.

Rental Income

Revenue generated by leasing property or equipment.

Primarily Rental

Pertaining to the use of property mainly for rental purposes, which may affect the tax treatment of income and expenses related to the property.