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:

Purchase Returns

Transactions where buyers return previously purchased merchandise to the seller, often because of defects or errors in the shipment.

Returns

The process of a customer returning previously purchased merchandise back to the seller, or the amount of profit generated from an investment.

Gross Margin Ratio

A financial indicator that calculates the disparity between sales and the cost of goods sold, represented as a portion of sales revenue.

Net Sales

The total revenue from sales reduced by returns, allowances for damaged or missing goods, and discounts.