Questions

In token Ring , hub is called Multistation Access Unit(MAU).

Direct Materials doesn't come under Fixed Cost because it vary with changes in the activity level of a business.

Fixed Cost :

A fixed cost is a cost that does not change over the short-term, even if a business experiences changes in its sales volume or other activity levels.

It is of some importance to understand the extent and nature of the fixed costs in a business, since a high fixed-cost level requires a business to maintain a high revenue level in order to avoid generating losses.

Examples of Fixed Cost are:

Insurance, Salaries, Rent, Property Taxes,...

1 quart = 4 cups.

=> We know that 1 quart = 2 pints

But 1 pint = 2 cups

=> 2 pints = 2 x 2 cups = 4 cups = 1 quart.

Regular dividend payments are signals that a company is healthy and profitable. Also, issuing dividends can attract investors (shareholders). Finally, a company may distribute earnings to shareholders if it lacks profitable investment opportunities.