Select the Appropriate Classification of Each of the Costs Listed

question 60

Multiple Choice

Select the appropriate classification of each of the costs listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Controller's salary

• A)Variable cost
• B)Fixed cost

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Definitions:

Command System

A method of organizing an economy in which property resources are publicly owned and government uses central economic planning to direct and coordinate economic activities; socialism; communism. Compare with market system.

Central Planning

An economic system where the government or a central authority makes all decisions about the production and allocation of goods and services.

Economic Profits

The surplus generated when total revenues exceed the total costs (including both explicit and implicit costs) of production, reflecting a return beyond the normal profit level.

Total Costs

The combined total of expenses related to the generation of goods or services, integrating both unchanging and adjustable costs.