Use the information below to answer the following questions.
Jackson Bottle Yard, a recycling glass company, has supplied the following information in relation to their actual sales in 2015 and planned sales for the first quarter of 2016. Past records indicate that expected receipts collected from debtors will be: 60 per cent in the month of sale
40 per cent in the month following the sale
-Which of the following expenses will stay constant irrespective of the level of sales?
A) local government rates on premises
B) overtime in the production area
C) sales commission
D) cost of sales

Question

Use the information below to answer the following questions.
Jackson Bottle Yard, a recycling glass company, has supplied the following information in relation to their actual sales in 2015 and planned sales for the first quarter of 2016.  Past records indicate that expected receipts collected from debtors will be: 60 per cent in the month of sale
40 per cent in the month following the sale
-Which of the following expenses will stay constant irrespective of the level of sales?
A) local government rates on premises 
B) overtime in the production area 
C) sales commission 
D) cost of sales

Quizplus · Accepted Answer

Local government rates on premises are fixed expenses that don't change with the level of sales. The other expenses listed (overtime in production area, sales commission, and cost of sales) are variable expenses that will increase as sales increase.

Use the Information Below to Answer the Following Questions