Which of the Following Is a Fixed Cost

question 178

Multiple Choice

Which of the following is a fixed cost?

• A)payment to hire a security worker to guard the gate to the factory around the clock
• B)wages to hire assembly line workers
• C)payments to an electric utility
• D)costs of raw materials

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Definitions:

Paid

The status of a financial obligation that has been fulfilled, indicating that no debt remains.

Year

A period of time consisting of 365 days, or 366 in a leap year, used as a basic unit of time to measure durations and align calendars.

Accumulated Depreciation

Accumulated depreciation accounts for the total amount of depreciation expense that has been claimed over the life of an asset, reducing its book value.

Balance Sheet

A report that lists a business's assets, obligations, and the equity of its shareholders on a specific date.