Select the Appropriate Type of Fixed Cost for Each Cost

question 258

Multiple Choice

Select the appropriate type of fixed cost for each cost listed below.
-salary of receptionist

• A)discretionary
• B)committed

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Definitions:

Net Income

The total profit of a company after deducting all expenses, taxes, and costs from its total revenue.

Profitability Ratios

Financial metrics that assess a firm's ability to generate profit relative to its revenue, assets, equity, or other financial metrics over a specified period.

Average Common Stockholders' Equity

The average equity stake held by common shareholders within a company, assessed over a specific period.

Net Income

Profit remaining after all operating expenses, interest, taxes, and dividends have been deducted from total revenue.