Which of the Following Is an Example of a Fixed

question 41

Multiple Choice

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

• A) Factory rental
• B) Raw materials
• C) Packaging costs
• D) Factory bonuses linked to the level of production

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Definitions:

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets.

Cash Ratio

A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its cash and cash equivalents alone.

NWC to Total Assets

A financial ratio that measures the net working capital (current assets minus current liabilities) in relation to the total assets of a company.

Interval Measure

A type of data measurement that includes order and a fixed measurement scale, allowing for the calculation of meaningful differences between data points.