Which of the Following Is a Fixed Cost

question 178

Multiple Choice

Which of the following is a fixed cost?

• A)payment to hire a security worker to guard the gate to the factory around the clock
• B)wages to hire assembly line workers
• C)payments to an electric utility
• D)costs of raw materials

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Definitions:

Outstanding Deposits

The total amount of money deposited in a financial institution that has not yet been credited to the depositor's account.

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or to a specified person.

Collection Delay

The time lag between when a company issues an invoice and when it actually receives payment, affecting cash flow and liquidity.

Average Daily Receipts

The average amount of money received by a company per day over a given period, often used to measure cash flow or performance.