Which of the Following Is Likely to Be a Fixed

question 34

Multiple Choice

Which of the following is likely to be a fixed cost  

• A) Materials
• B) Commissions
• C) Depreciation
• D) Direct labor

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Definitions:

Standard Costs

Predetermined or estimated costs of manufacturing, selling, and administrative activities, used for budgeting and assessing performance.

Rate Variance

The difference between an expected or standard cost and the actual cost incurred, often used in budgeting and financial analysis to gauge performance.

Standard Wage Rate

The predetermined rate of pay for a specific job or task over a set time period.

Wage Rate

The amount of compensation paid to an employee per unit of time (e.g., hour, day, week) for their labor.