Which of the Following Would Not Be Considered Part of Fixed

question 60

Multiple Choice

Which of the following would not be considered part of fixed investment spending (I) ?

• A)Toyota buys a new robot for its automobile assembly line.
• B)Apple computer builds a new factory.
• C)Exxon increases its inventories of unsold gasoline.
• D)An accountant buys a newly built home for herself and her family.
• E) all of the above

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Definitions:

Variable Expenses

Costs that fluctuate with the level of output or sales, such as raw materials and sales commissions.

Fixed Expenses

Costs that remain constant over a period and are not affected by changes in business activity levels.

Variable Expenses

Costs that vary directly with the level of activity or production output, such as raw materials and direct labor.

Break-even Point

The point at which total costs and total revenues are equal, meaning there is no profit or loss.