Which of the Following Is a Typical Example of a Fixed

question 218

Multiple Choice

Which of the following is a typical example of a fixed cost?

• A)taxes
• B)raw materials
• C)sales commissions
• D)building rental expense
• E)hourly wages

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Definitions:

Profit-Maximizing

The act of adjusting production and sales to achieve the highest possible profit under given market conditions.

Demand

The quantity of a product or service that consumers are willing and able to purchase at a given price.

Profit

The financial gain made in a transaction or business operation, calculated as the difference between revenue and costs.

Positive Profits

When a company's total revenue exceeds its total costs, resulting in a financial gain.