Which of the Following Would NOT Be Paid for Using

question 182

Multiple Choice

Which of the following would NOT be paid for using working capital?

• A) Employee salaries
• B) What it costs to store inventory
• C) What a firm owes suppliers
• D) Purchase of new facilities
• E) Advertising expense

---

Definitions:

Fixed Costs

Regular costs that do not vary with the scale of production or sales activities, encompassing rent, salary disbursements, and insurance contributions.

Target Net Income

The desired profit that a company aims to achieve within a specific period, often used in budgeting and planning.

Required Sales

Required sales represent the amount of sales needed to achieve a particular financial target, such as breaking even or reaching a desired profit level.

Variable Costs

Costs that change in proportion to the level of activity or production volume, such as raw materials and direct labor costs.