Select the Appropriate Classification of Each of the Costs Listed

question 47

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.
-Machine lubricant

• A)Variable cost
• B)Fixed cost

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Definitions:

Legal Liability

The legal responsibility to compensate for harm caused to another person or property, arising out of one's actions or failures to act.

Negligent Conduct

Behavior that falls below the standard of care expected to protect others from unreasonable risk of harm.

Illegal Contract

A contract that is not enforceable because it involves activities that are against the law.

Insurance Agreement

A formal contract where one party agrees to indemnify another against loss, damage, or liability in return for payment of a premium.