Select the Appropriate Cost Behaviour for the Following Costs Incurred

question 122

Multiple Choice

Select the appropriate cost behaviour for the following costs incurred by a bicycle manufacturer.
-Cost of rework

• A)Variable
• B)Fixed

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Definitions:

Financial Plan

A document detailing an individual's or organization's current financial status and long-term monetary goals, along with strategies to achieve those goals.

Dividend Payout Ratio

A financial metric that shows what percentage of a company's net income is distributed to its shareholders as dividends.

Retention Ratio

A financial metric that shows the percentage of a company's earnings that are not distributed as dividends but are reinvested in the business.

Profit Margin

The profit margin is the percentage of revenue that remains as profit after all expenses are deducted from sales.