Which of These Would Be Considered a Fixed Cost

question 28

Multiple Choice

Which of these would be considered a fixed cost?

• A)Cost of fuel for a transport company.
• B)Laundry costs to wash towels used by a hairdresser.
• C)Insurance premium.
• D)Materials used in production.

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Definitions:

Fuzzy Trace Theory

A cognitive psychology theory suggesting people encode information into two types of representations: verbatim (exact details) and gist (the essence or meaning).

Problem Solving

The process of identifying solutions to specific issues or obstacles in a logical and systematic manner.

Applying Rules

The process of utilizing predetermined guidelines or procedural methods in various situations or contexts.

Using Analogies

The practice of explaining a concept or idea by comparing it to something else that is more familiar or simpler to understand.