Which of the Following Is Most Likely a Fixed Cost

question 30

Multiple Choice

Which of the following is most likely a fixed cost?

• A)Raw materials costs.
• B)Shipping charges.
• C)Property insurance premiums.
• D)Fuel costs for running the factory.
• E)None of the above.

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Definitions:

Decide

The act of making a choice or coming to a conclusion after consideration of options or evidence.

Nonprogrammed Decisions

Decisions made in response to situations that are unique, are poorly defined, and largely unstructured.

Programmed

Describes tasks or operations that are set up to follow a predetermined sequence of operations or instructions.

Routine

A set sequence of actions regularly followed, creating a structured way of accomplishing tasks or activities.