Which of the Following Costs Is an Example of a Cost

question 7

Multiple Choice

Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?

• A) direct labor
• B) salary of a factory supervisor
• C) units-of-production depreciation on factory equipment
• D) direct materials

---

Definitions:

Stock Market Boom

A period of rapid and significant rise in the value of shares traded in stock markets, reflecting optimism and economic growth.

Proverbial Bubble

A phrase referring to an unrealistic or highly speculative situation that is likely to collapse or burst, much like an actual bubble.

1920s

A decade marked by high prosperity in the United States (the Roaring Twenties), but ended with the stock market crash of 1929, leading to the Great Depression.

1990s

The decade extending from January 1, 1990, to December 31, 1999, characterized by significant technological, cultural, and political changes worldwide.