All of the Following Are Most Likely to Be Fixed

question 229

Multiple Choice

All of the following are most likely to be fixed costs EXCEPT the cost relating to

• A) insurance.
• B) taxes.
• C) rent.
• D) packaging.

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Definitions:

Fixed Manufacturing Overhead

Consistent costs incurred during the manufacturing process that do not change with the amount of production, like factory rent and salaries of permanent staff.

Job-Order Costing System

An accounting system that accumulates costs by specific jobs or orders, suitable for manufacturing or service processes that are distinctively identifiable.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate overhead costs to products or job orders based on a certain activity base.

Automated Bandsaw

A machine equipped with a continuously looped, serrated blade for cutting materials, operated through computer or programmable logic controls.