Which of the Following Is a Fixed Cost

question 48

Multiple Choice

Which of the following is a fixed cost?

• A)Payment to hire a security worker to guard the gate to the factory around the clock
• B)Wages to hire assembly line workers
• C)Payments to an electric utility
• D)Costs of raw materials

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid, typically recorded at the end of an accounting period.

Prepaid Expenses

Costs paid in advance for goods or services, which are accounted for as assets until the benefits are realized.

Investing Activities

Financial transactions and events related to acquiring or disposing of investments and long-term assets.

Bonds Payable

A long-term liability representing the amount owed by an entity to bondholders, to be repaid at the bond's maturity date.