An Example of a Fixed Cost Would Be

question 230

Multiple Choice

An example of a fixed cost would be

• A)rent.
• B)direct materials.
• C)hourly wages.
• D)sales commission.

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Definitions:

Sales Peak

The highest point or period of maximum sales for a product or service, often influenced by factors such as seasonality, marketing efforts, or consumer trends.

Product Life Cycle

An idea that outlines the various phases a product experiences, from its initial launch, through its development and peak, to its eventual decrease in popularity in the marketplace.

Profits Decline

A decrease in the net earnings of a company over a specific period compared to previous periods, often reflecting challenges in operations or sales.

Competition

The rivalry among businesses to capture sales, market share, and customer loyalty in a particular market or industry.