Fixed Cost Refers To

question 86

Multiple Choice

Fixed cost refers to:

• A)the sum of the expenses that vary directly with the quantity of the product produced and sold.
• B)the total expense incurred by a firm in producing and marketing a product or service.
• C)expenses that are stable and do not change with the quantity of the product that is produced and sold.
• D)the consideration exchanged for the ownership or use of a good or service.

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Definitions:

Fund Balances

The net assets in governmental funds, representing the difference between assets and liabilities.

Operating Fund

A fund used by an organization to manage its day-to-day operational expenses.

Encumbrance System

A legal system concerning real property wherein a claim or lien is placed on the property, affecting its use and transferability.

Estimated Commitments

Obligations or contracts that a company plans to undertake in the future, which are often projected or approximated.