Which of the Following Is Likely a Fixed Cost in a Fast-Food

question 214

Multiple Choice

Which of the following is likely a fixed cost in a fast-food restaurant?

• A)cost of flour for pizza crust
• B)cost of pepperoni for pizza topping
• C)shift manager's salary
• D)monthly electric bill

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Definitions:

Market Value

The cost at which an asset or service can be sold or bought right now in the marketplace.

Excess Cash

Cash that exceeds the normal operating needs of a business and is available for investing or returning to shareholders.

Stock Repurchase

A corporate action in which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.