Which of the Following Is an Example of a Fixed

question 54

Multiple Choice

Which of the following is an example of a fixed cost?

• A) Paper used in the manufacture of textbooks.
• B) Property taxes paid by a firm to the City of Los Angeles.
• C) The wages of part-time workers who are paid $8 per hour.
• D) Gasoline consumed by salespersons' cars.
• E) Surgical supplies used in a hospital's operating room.

---

Definitions:

Cost-Volume-Profit Analysis

An accounting method used to determine the effects of changes in costs and volume on a company's profits.

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behavior are valid.

Cost-Volume-Profit Analysis

A management accounting technique used to determine how changes in costs and volume affect a company's operating income and net income.

Future Cost Changes

Refers to the anticipated variations in the costs of goods and services over time, affecting budgeting and financial planning.