Which of the Following Is Most Likely to Be a Fixed

question 6

Multiple Choice

Which of the following is most likely to be a fixed cost?

• A)shipping charges
• B)property insurance premiums
• C)wages for unskilled workers
• D)expenditures for raw materials
• E)wages for skilled workers

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Definitions:

Present Value

The valuation of an expected income stream determined by discounting the future income to the present using a discount rate.

Income Stream

A regular flow of money from an investment, property, or other financial assets.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the real cost of borrowing or the real yield on savings.

Perfect Substitute

Two or more goods that can be used interchangeably with no loss of utility by the consumer.