Which of the Following Is Not Classified as a Fixed

question 53

Multiple Choice

Which of the following is not classified as a fixed product cost?

• A)Machine depreciation
• B)Electricity
• C)Factory rent
• D)Production manager's salary

---

Definitions:

Component

A part or element that combines with others to form a whole system or product.

Contribution Margin

The amount of revenue from sales that remains after variable costs are subtracted, useful in determining the profitability of individual products or services.

Annual Fixed Costs

The total fixed costs incurred by a business in a year, including rent, salaries, and insurance, which do not vary with production volume.

Financial Advantage

The benefit gained in a financial context that puts an individual, company, or country in a better position than others.