Which of the Following Costs of Publishing a Book Is

question 536

Multiple Choice

Which of the following costs of publishing a book is a fixed cost?

• A)author royalties of 5% per book
• B)the costs of paper and binding
• C)shipping and postage expenses
• D)composition, typesetting, and jacket design for the book

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Definitions:

Current Assets

Assets on a balance sheet that are expected to be converted into cash, sold, or consumed within a year.

Current Liabilities

Financial obligations a company must pay within a year, such as loans, accounts payable, and other debts.

Working Capital Ratio

A financial metric that measures a company's efficiency and its short-term financial health by comparing current assets to current liabilities.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.