There Are Three Categories of Costs: Fixed Costs, Variable Costs

question 20

Multiple Choice

There are three categories of costs: fixed costs, variable costs and semi-variable costs. Which of the following is a semi-variable cost?

• A) depreciation
• B) labor costs
• C) raw materials
• D) management salaries

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Definitions:

Circular Thinking

A form of reasoning in which the conclusion is pre-assumed in one of the premises, often leading nowhere or to logical fallacies.

Imaging

A technique used to visualize the internal structures of the body for diagnostic purposes.

Divergent Thinking

A thought process used to generate creative ideas by exploring many possible solutions.

Availability Heuristic

An instinctive heuristic that uses the readily accessible instances that occur to someone as they assess a distinct theme, notion, strategy, or judgement.