Suppose the Cost Formula for Monthly Depreciation Cost in a Factory

question 124

Multiple Choice

Suppose the cost formula for monthly depreciation cost in a factory is as follows: Total cost = $20,000
Which type of cost does this formula represent?

• A)a variable cost
• B)a fixed cost
• C)a mixed cost
• D)a step cost

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Definitions:

Spot Exchange Rates

The current exchange rate at which a currency can be bought or sold for immediate delivery.

Speculative Derivatives

Financial instruments used to speculate on the future movements of asset prices, without intention of holding the underlying assets.

Net Income

The total amount of profit earned by a company after all expenses and taxes have been subtracted from revenue.