Which of These Is Not a Fixed Cost

question 31

Multiple Choice

Which of these is not a fixed cost?

• A) Depreciation on motor vehicles.
• B) Direct labour.
• C) Management salaries.
• D) Lease payments.

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Definitions:

Mean Absolute Deviation

Mean absolute deviation is a measure of variability that represents the average absolute difference between each data point and the mean of the data set.

Sum of Squares

A statistical measure that quantifies the variance within a dataset by summing the squared differences between each value and the mean.

Forecast Accuracy

The degree to which forecasted values correspond with actual values over a specified period.

Mean Absolute Deviation

Mean absolute deviation measures the average absolute distances between each data point in a set and the set's mean, providing an overview of variability.