Employee salaries which consist of a $35,000 base amount plus 12% of sales would

Question

Employee salaries which consist of a $35,000 base amount plus 12% of sales would best be classified as a:

A.   variable cost.

B.   committed fixed cost.

C.   discretionary fixed cost.

D.   mixed cost.

E.   None of these.

Research and development costs are generally considered to be:

A.   variable cost.

B.   committed fixed cost.

C.   discretionary fixed cost.

D.   mixed cost.

E.   None of these.

The paper costs of a printing shop would best be classified as a:

A.   variable cost.

B.   committed fixed cost.

C.   discretionary fixed cost.

D.   mixed cost.

E.   None of these.

Explanation / Answer

1.E. none of these

2.C. discretionary fixed cost

3.E. none of these.

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