Of the Costs Listed Below,which Would Most Likely Be Considered

question 76

Multiple Choice

Of the costs listed below,which would most likely be considered as a discretionary fixed cost?

• A) Depreciation of factory building.
• B) Property taxes for factory.
• C) Insurance for the factory building.
• D) Research costs for new manufacturing products.

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold, representing the profit a company makes after deducting the costs associated with making and selling its products or services.

Sales Discounts

Reductions granted on the selling price of goods or services to encourage prompt payment by the customer.

Cash Collection

The process of gathering and managing payments received from customers.

Discount Period

The period between the issuance of a bill, note, or bond and its maturity date, during which it may be purchased at a reduced price to yield interest upon redemption at full price.