Which of the Following Is a Fixed Cost

question 331

Multiple Choice

Which of the following is a fixed cost?

• A) Direct materials cost
• B) Direct labour cost
• C) Sales commissions expense
• D) Straight-line depreciation expense

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Definitions:

Revenue

The total financial proceeds accumulated from a company's chief business endeavors, including sales of services and goods integral to its operations.

Equity

The ownership interest of shareholders in a corporation, represented by the assets minus the liabilities.

Accounts Receivable

The amount due to a company from its clients for goods or services that have been dispatched or consumed, but payment has not been received.