Fixed Costs Are the Costs of ________

question 50

Multiple Choice

Fixed costs are the costs of ________.

• A) raw materials and labor
• B) the last 100 units of production
• C) rent and equipment
• D) all expenses incurred by the firm

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, with voting rights and the potential for dividends.

Articles of Incorporation

A document filed with a government body to legally document the creation of a corporation; synonymous with Corporate Charter but varies by jurisdiction.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, indicating the earnings investors are making from dividends.

Cash Dividends

Earnings given by a corporation to its investors, usually in the form of profit sharing.