Select the Appropriate Cost Behavior for Each of the Costs

question 41

Multiple Choice

Select the appropriate cost behavior for each of the costs listed below.
-rental cost of warehouse

• A)variable
• B)fixed

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Definitions:

Idle

The state of an asset or resource not being in use, contributing no output or value during a certain period.

Fixed Assets

Long-term tangible assets that are used in the operation of a business and are not expected to be converted to cash in the short term, such as land, buildings, and machinery.

Book Value

Book Value represents the value of a company or an asset as it appears on the balance sheet, calculated by subtracting liabilities from assets.

Final Cash Flow

The last cash flow in a series of transactions or in the timeline of an investment, project, or finance-related activity.