Which of the Following Is a Fixed Cost

question 57

Multiple Choice

Which of the following is a fixed cost?

• A)Electricity to power the production process.
• B)Insurance on the factory's physical plant.
• C)Raw materials.
• D)Wages paid to labour.

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Definitions:

Functional Strategy

A specific, detailed plan tailored to a department or unit within an organization, aimed at achieving the broader corporate strategies and goals.

Specific Area of Operations

Refers to a designated segment within an organization focused on a particular set of tasks, goals, or objectives, often with its specified strategies and responsibilities.

Strategic Business Unit

A semi-autonomous division within a larger organization, responsible for its own strategy, resources, and performance, focusing on specific market segments.

Larger Enterprise

A business organization that operates on a vast scale, typically encompassing multiple locations, a large workforce, and a wide range of products or services.