An Example of a Discretionary Fixed Cost for a Clothing

question 65

Multiple Choice

An example of a discretionary fixed cost for a clothing manufacturer is

• A)An annual contract for television advertising cost.
• B)A 10-year lease on an office building.
• C)Yards of fabrics used.
• D)None of these ans choices are correct.

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Definitions:

Effective Interest Method

A method of calculating the amortized cost of a bond and of allocating interest expense over the bond's life, based on the bond's yield at issuance.

Premium on Bonds Payable

The amount by which a bond's selling price exceeds its face value, reflecting higher-than-market interest rates.

Interest Payable

A liability account on a company's balance sheet representing the amount of interest expense that has been incurred but not yet paid as of the reporting date.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period.