Which of the Following Is the Term for a Cost

question 121

Multiple Choice

Which of the following is the term for a cost that does NOT change in total despite wide changes in volume?

• A) Fixed cost
• B) Variable cost
• C) Mixed cost
• D) Sunk cost

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Definitions:

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

Income Taxes

Taxes on individual or corporate income.

Inventory Costing Method

A system used to evaluate the value of inventory, including methods such as First-In, First-Out (FIFO), Last-In, First-Out (LIFO), and average cost.

Comparability

Ability to compare the accounting information of different companies because they use the same accounting principles.