Which of the Following Is Considered an Intangible Action

question 22

Multiple Choice

Which of the following is considered an intangible action?

• A) Advertising/public relations
• B) Health care
• C) Physical therapy
• D) Funeral services

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Definitions:

Fixed Costs

are expenses that do not change in total over a period of time, regardless of the level of production or sales volume, such as rent or salaries.

Break-even Point

The point where the amount produced or sold generates revenue that matches the overall costs, leading to neither profit nor loss.

Unit Contribution Margin

The amount each unit sold contributes to profit, calculated by subtracting the variable cost per unit from the selling price per unit.

Fixed Costs

Fixed costs are those business expenses that do not change with the level of goods or services produced, such as rent.