Select the Appropriate Type of Fixed Cost for Each Cost

question 121

Multiple Choice

Select the appropriate type of fixed cost for each cost listed below.
-Rent of machinery

• A)Discretionary
• B)Committed

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Definitions:

Risky Asset

An asset that carries a higher level of financial risk when compared to safer investments, often with the potential for higher returns.

Semi-Strong Efficiency

A form of market efficiency that asserts all public information is already reflected in stock prices, making it impossible to achieve consistently higher returns.

Historical Information

Past data or records that provide context or insight into an event, individual, or institution's background.

Market Prices

The current price at which an asset or service can be bought or sold in a market, determined by the supply and demand forces.