Which of the Following Is an Example of a Fixed

question 73

Multiple Choice

Which of the following is an example of a fixed cost that businesses have to incur?

• A) cost of raw materials
• B) cost of supplies
• C) shipping costs
• D) sales commissions
• E) cost of building plants

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Definitions:

Average Cumulative Investment

The total sum of all investments made over a period of time, divided by the number of investments.

Retail Store

A business establishment that sells goods to consumers, typically in small quantities.

Rate of Commission

A specific percentage of the sales amount or profit given to an agent or employee as part of their compensation.

Net Sales

The amount of sales revenue remaining after deducting returns, allowances for damaged or missing goods, and discounts.