Select the Appropriate Classification of Each of the Costs Listed

question 60

Multiple Choice

Select the appropriate classification of each of the costs listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Controller's salary

• A)Variable cost
• B)Fixed cost

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Definitions:

Venture Capital

Financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.

Factoring Accounts Receivable

A financial transaction where a business sells its accounts receivable to a third party at a discount, in order to obtain immediate cash flow.

Face Value

The nominal value or original monetary worth of a security or financial instrument as stated by the issuer.

Self-Liquidating Loans

Loans that are structured to be paid off through the cash flow generated by the project or asset they are used to finance.