Which Is Not a Fixed Cost

question 16

Multiple Choice

Which is not a fixed cost?

• A)monthly rent of $1,000 with a 12 month lease
• B)an insurance premium of $50 per year,paid last month
• C)Tax accountant's salary
• D)labor costs paid per hour

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Definitions:

Amortized

The steady decrease of an owed sum through consistent payments towards both the interest and the principal over a set duration.

Total Debt Service Ratio

A debt measurement ratio that calculates an individual's total debt payments relative to their gross income.

Gross Monthly Income

The total amount of income earned in a month before any deductions or taxes are applied.

Compounded Monthly

The method of computing interest that includes both the original amount of money deposited or loaned and the interest that amount has earned in past months.