Fixed Costs That Continue to Exist Even After a Product

question 120

Multiple Choice

Fixed costs that continue to exist even after a product line is dropped are called:

• A)avoidable fixed costs.
• B)unavoidable fixed costs.
• C)variable fixed costs.
• D)relevant fixed costs.

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Definitions:

Working Capital Management

The process of managing short-term assets and liabilities to ensure a company operates efficiently.

Dealer

A person or firm in the business of buying and selling securities for their own account, rather than for customers.

Commodity

Basic goods used in commerce that are interchangeable with other goods of the same type.

Original Issuer

The entity that first creates and offers securities or financial instruments to the public, such as bonds or stocks.