Which of the Following Would Be Considered a Fixed Cost

question 7

Multiple Choice

Which of the following would be considered a fixed cost in a manufacturing setting?

• A) Depreciation
• B) Direct labor
• C) Sales commissions
• D) Direct materials

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Definitions:

Company's Objective

A set of goals or objectives that a company aims to achieve, which guide its internal strategy and decision-making processes.

Measurable

Capable of being precisely quantified or assessed, often used in the context of goals or performance indicators.

Concrete

a construction material composed of cement, aggregate (like sand and gravel), water, and often admixtures, used for building structures due to its strength.

Decision-making Process

The cognitive process resulting in the selection of a belief or a course of action among several possible alternatives.