Which of the Following Is NOT an Example of a Cost

question 58

Multiple Choice

Which of the following is NOT an example of a cost that varies in total as the number of units produced changes?

• A) Electricity per KWH to operate factory equipment
• B) Direct materials cost
• C) Insurance premiums on factory building
• D) Wages of assembly worker

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Definitions:

Invest

To allocate money in the expectation of some benefit in the future, such as income or profit.

Compounded Semi-annually

A method where interest is calculated and added to the principal twice a year.

Payments

The act of transferring money from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Loan

A sum of money that is borrowed, usually from a financial institution, which requires repayment with interest over a set time frame.