Multiple choice

Directions: Choose the correct option for the given question.

Salary paid to the director is an ______ expense.

  1. direct

  2. indirect

  3. normal

  4. variable

  5. fixed
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Salary paid to a director is an administrative expense. Since it does not change with the level of production, it is classified as a fixed cost.

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