A Fixed Asset Is Defined as an Asset Which

question 4

Multiple Choice

A fixed asset is defined as an asset which:

• A)The firm intends to use for an extended period
• B)The firm intends to keep for the foreseeable future
• C)Will be sold in more than 12 months after refurbishment
• D)Has been owned by the firm for a long time

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Definitions:

Indirect Costs

Expenses not directly tied to a specific project or activity but necessary for the general operation of an organization, such as utilities, rent, and administrative salaries.

Fixed Costs

Expenses that do not change with the level of production or business activity, such as rent or salaries.

Cost-Benefit Analysis

A financial assessment comparing the costs and benefits of a project or decision to determine its worth.

Utility Analysis

A method used in human resources and organizational psychology to assess the economic value or effectiveness of interventions like training programs, by comparing costs and benefits.