Which one of these is most apt to be a fixed,cash expense in the short run?
A)Raw materials cost
B)Bond interest
C)Commissions paid to sales representatives
D)Depreciation
E)Manufacturing labor costs

Question

Quizplus · Accepted Answer

Bond interest is considered a fixed, cash expense because it is a contractual obligation that must be paid regardless of the company's financial performance or operational needs. Unlike variable costs such as raw materials, commissions, and manufacturing labor, which fluctuate with production volume, bond interest payments are predetermined and do not change in the short run. Depreciation is a non-cash expense.

Which One of These Is Most Apt to Be a Fixed,cash