Mortgage payments for a long-term care facility are a __________
a. fixed indirect cost
b. fixed direct cost
c. variable indirect cost
d. variable direct cost
a
a. Correct: Mortgage payments for a long-term care facility are an example of a fixed (do not vary with volume) indirect (general) cost.
b. Incorrect: Mortgage payments are not a direct (service) cost but an indirect (general) cost.
c. Incorrect: Mortgage payments are not variable (i.e., they are not an expense that varies with volume).
d. Incorrect: Mortgage payments are not variable (i.e., they are not an expense that varies with volume).
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a. true b. false