Select the Appropriate Type of Fixed Cost for Each Cost

question 161

Multiple Choice

Select the appropriate type of fixed cost for each cost listed below.
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• A)discretionary
• B)committed

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Definitions:

Dividend Growth

The yearly percentage increase in the dividends distributed by a company to its shareholders.

Quarterly Dividends

Dividend payments made by a corporation to its shareholders every quarter of the financial year.

Preferred Stock

A class of stock that typically provides dividends to its holders before common stock and may have priority over common stock in the event of a liquidation.