Which of the Following Is an Example of a Fixed

question 95

Multiple Choice

Which of the following is an example of a fixed cost for a bridal gown shop?

• A)the services of the seamstress to fit each gown
• B)the costs associated with dying the shoes to match the bridesmaids' dresses
• C)the cost associated with the layaway of variously priced gowns
• D)the cost of the mannequin used to display current gowns
• E)the costs associated with a generous return policy

---

Definitions:

Cost Formula

An equation or method used to determine the total costs associated with production or service delivery, often incorporating both fixed and variable components.

Activity Level

The volume of work or production capacity of a business, often used to allocate fixed costs or to measure efficiency.

Period Costs

Expenses that are not directly tied to the production process and are charged to the accounting period in which they are incurred, such as selling, general, and administrative expenses.

Product Costs

The total cost involved in creating a product, including direct materials, direct labor, and manufacturing overhead.