Figure 3-4 the Following Information Is Available for Electricity Costs

question 92

Multiple Choice

Figure 3-4 The following information is available for electricity costs for the last six months of the year:

-Refer to Figure 3-4.What are the fixed costs?

• A) $420
• B) $100
• C) $200
• D) none of these

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Definitions:

Administrative Cost

Expenses related to the general operation of a company, including office salaries, utilities, and legal fees, but not including production costs.

Toll-free Telephone Line

A phone number that allows callers to reach businesses without incurring charges, often used for customer support.

Period Cost

Expenses that are not directly tied to the production process and are incurred regardless of the volume of production, such as selling, general, and administrative expenses.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs related to maintenance, utilities, and equipment depreciation.