Asked by Leston Alexis on Jun 16, 2024
Verified
Which of the following costs of publishing a book is a fixed cost?
A) Author royalties of 5 percent per book
B) The costs of paper and binding
C) Shipping and postage expenses
D) Composition, typesetting, and jacket design for the book
Composition
The way in which different components or elements are organized or arranged.
Fixed Cost
Expenses that do not change in proportion to the level of goods or services produced by a business.
Author Royalties
Author royalties are payments made by publishers to authors for the right to use, produce, or sell the authors' creations, usually a percentage of sales.
- Acknowledge the contribution of fixed costs to production activities and the method of their allocation among units of production.
Verified Answer
GD
GRIEGO DANIELLEJun 18, 2024
Final Answer :
D
Explanation :
Fixed costs are those that do not change with the level of production or sales. Composition, typesetting, and jacket design for the book are costs that are incurred once, regardless of how many copies of the book are printed and sold, making them fixed costs.
Learning Objectives
- Acknowledge the contribution of fixed costs to production activities and the method of their allocation among units of production.
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