Which of the Following Is Not an Example of a Committed

question 72

Multiple Choice

Which of the following is not an example of a committed fixed cost?

• A) Property taxes.
• B) Depreciation on buildings.
• C) Salaries of management personnel.
• D) Outlays for advertising programs.
• E) Equipment rental costs.

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Definitions:

Profit

The financial gain made in a transaction or operation, calculated as total revenues minus total costs.

Production Function

A mathematical relationship expressing the amount of output generated from different amounts of inputs.

Profit

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Commodity

A fundamental merchandise in commerce that can be swapped with other merchandise of a similar nature.