Fixed Costs

question 23

Multiple Choice

Fixed costs

• A)are always sunk.
• B)are avoidable.
• C)are sometimes sunk.
• D)sunk in the short run, but not in the long run.

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Definitions:

Fiduciary Funds

Funds held by an entity in a trustee or agent capacity for others, requiring the entity to manage the funds for the benefit of the parties involved.

Financial Obligation

A legal commitment to fulfill a financial payment or service, including debts, contracts, and transactions.

Governmental Fund

A type of fund used in governmental accounting that focuses on the sources, uses, and balances of governmental financial resources, excluding proprietary and fiduciary activities.

Fund Financial Statements

Financial reports that detail the income, expenditures, and other financial activities of a specific fund within an organization.