Which of the Following Is a Fixed Cost in a Clothing

question 49

Multiple Choice

Which of the following is a fixed cost in a clothing store?

• A)store manager's salary
• B)electricity
• C)sales commissions
• D)inventory
• E)paper for the cash register

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Definitions:

Intrinsic Value

The inherent or true value of a security, based on underlying assets and earnings, independent of its market value.

Dividends

Payments made by a corporation to its shareholder members, typically derived from the company's profits.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company’s assets to create profits.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments to shareholders.