Which of the Costs Below Is an Example of a Fixed

question 2

Multiple Choice

Which of the costs below is an example of a fixed cost in the short run?

• A) The cost of paper to a copy shop
• B) The wages paid to workers at a landscaping firm
• C) Fuel costs to a taxicab service
• D) A 3-year lease on retail space at the local mall for a clothing retailer

Analyze the role of empathy in motivating helping behavior.

Describe the decision-making process in emergency situations according to the bystander-calculus model.

Recognize the importance of socialization in developing prosocial behavior.

Understand mutualism and its explanations for cooperative behavior.

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Definitions:

CCA Class

Specific categories under the Canadian Capital Cost Allowance that determines the depreciation rate for tax purposes on an asset.

Depreciation Tax Shield

The reduction in income tax obligation resulting from the deduction of depreciation expenses.

Tax Rate

The percentage at which an individual or corporation is taxed on their income or profits.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, which evenly spreads the depreciable amount over the expected useful life of the asset.