Depreciation on a Factory Machine Is an Example of Which

question 74

Multiple Choice

Depreciation on a factory machine is an example of which of the following types of cost?

• A)Variable cost
• B)Sunk cost
• C)Opportunity cost
• D)Period cost

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Definitions:

Royalties

Payments made by one party (the licensee) to another (the licensor) for the right to use a particular property, typically intellectual property.

Foreign Subsidiary

A company that is owned or controlled by another company but is located in a country different from the parent company.

Management Fees

Fees paid for the professional management of assets or investment funds.

Foreign Subsidiary

A company that is partially or wholly owned by another company (parent company) but is based in a different country.