Which Is an Example of a Fixed Expense

question 6

Multiple Choice

Which is an example of a fixed expense?

• A) rent
• B) groceries
• C) books
• D) fuel

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Definitions:

Operating Expenses

Expenses incurred through normal business operations, excluding costs related to production or manufacturing.

Cost of Goods Sold

Financial outlays directly incurred during the production of goods a company retails, involving material and labor.

Merchandise

Goods that are bought and sold in the course of business operations, typically in a retail or wholesale context.

Credit Terms

The conditions under which a seller extends credit to a buyer, including the repayment time frame and any interest or discounts.