Which of the Following Would Be Considered a Fixed Cost

question 87

Multiple Choice

Which of the following would be considered a fixed cost in a manufacturing setting?

• A) depreciation
• B) direct labor
• C) sales commissions
• D) direct materials

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Definitions:

Negative Exponential Distribution

A probability distribution used to model time between independent events that occur at a constant average rate.

Average Arrival Rate

The average rate at which entities (such as customers or products) arrive at a specific point or system over a defined period.

M/D/1

A notation in queue theory representing a system with a single server, where arrivals are Markovian (Poisson process), service times are deterministically fixed, and there is one server.

Constant Service Time

A condition in queuing theory where the time required to serve each customer is the same and does not vary.