Cool Runnings Operates a Chain of Frozen Yogurt Shops

question 76

Multiple Choice

Cool Runnings operates a chain of frozen yogurt shops.The company pays $5,000 of rent expense per month for each shop.The managers of each shop are paid a salary of $3,000 per month and all other employees are paid on an hourly basis.Relative to the number of shops,the cost of rent is which kind of cost?

• A) Variable cost
• B) Fixed cost
• C) Mixed cost
• D) Opportunity cost

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Definitions:

Checkout Counter

The place in a store where goods are paid for and where transactions are completed.

Cell Phone

A portable electronic device that enables users to make voice calls, send text messages, and access the internet.

Accept

Agreement to the terms of a proposal or offer, thereby creating a binding contract between the parties involved.

Mail Survey

A research method in which questionnaires are sent through postal mail to collect data from respondents.