Using Account Analysis, What Type of Cost Is the Fee

question 18

Multiple Choice

Using account analysis, what type of cost is the fee the airline company charges for your bags assuming a typical policy is $25 if the bag weighs between 0 and 50 lbs.; $75 if the bag weighs between 50 and 75 lbs. and $125 if the bag weighs between 75 and 100 lbs?

• A)Fixed
• B)Mixed
• C)Step
• D)Variable

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Definitions:

Dividend Per Share

The amount of dividend that a company pays out to its shareholders for each share they own.

Return on Equity

An indicator of a company's financial performance, showing the amount of profit generated per dollar of shareholders' investment.

Required Return

The minimum expected return an investor demands for investment in a specific asset, considering its risk profile.

Earnings

The profit a company makes after deducting its operating expenses, taxes, and costs from its revenue.