Select the Appropriate Cost Behavior for Each of the Costs

question 130

Multiple Choice

Select the appropriate cost behavior for each of the costs listed below.
-salary of chief executive officer

• A)variable
• B)fixed

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Definitions:

FASB

The Financial Accounting Standards Board, an organization that establishes financial accounting and reporting standards in the United States.

AICPA

The American Institute of Certified Public Accountants, a professional organization for Certified Public Accountants (CPAs) in the United States.

Shares Of Stock

Shares of stock represent units of ownership interest in a corporation, giving shareholders a portion of the company's profits and assets.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders, and it has its own rights and liabilities distinct from those of its owners.