Fixed Costs

question 183

Multiple Choice

Fixed costs:

• A)reduce the risk of loss
• B)are considered variable costs over the long run
• C)are graphed as a steeply sloped line
• D)provide less operating leverage

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Definitions:

Cost Center Manager

An individual responsible for managing a segment of a business that does not directly generate revenue, focusing on controlling costs instead.

Income from Operations

Profit generated from a company’s main business functions, excluding income from investments and other non-operational sources.

Service Department Charges

Costs associated with the support departments of a company, such as human resources or maintenance, which do not directly generate revenue but provide essential support to operational departments.

Direct Operating Expenses

Costs directly associated with the operation of a business, excluding overhead and administrative expenses.