Multiple choice

Depreciation is a/an _____ expenditure.

  1. variable

  2. fixed

  3. direct

  4. indirect

  5. semi-variable
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Depreciation is considered a fixed cost because it is a non-cash expense that remains constant regardless of the level of production or sales volume. It is allocated over the useful life of an asset.

Keep practicing — related questions