Fixed Costs Are Defined as _____

question 11

Multiple Choice

Fixed costs are defined as _____

• A)the total costs of a firm's production.
• B)the additional costs of the last unit produced.
• C)costs that increase proportionately as the quantity produced increases.
• D)costs that do not vary as quantity produced increases.
• E)implicit costs only.

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Definitions:

Earnings After Tax

The net income a company retains after deducting all its expenses, including taxes, highlighting its profitability.

Deferred Taxes

Taxes owed that are not paid at the current time but are instead deferred to be paid in the future.

Net Cash Flow

The variation in cash earnings versus expenditures for a business during a certain period.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated by dividing total liabilities by total assets.