Thurmon Retail has three stores in West Virginia.Which of the following costs would likely be included when computing the proﬁt margin controllable by store no s manager?
A)Store no s allocated portion of common ﬁxed expenses.
B)Property taxes attributable to store no
C)The salary of Thurmon's president.
D)The income tax expense attributable to store no s proﬁt.
E)Hourly labor costs incurred by personnel at store no

Question

Quizplus · Accepted Answer

Hourly labor costs incurred by personnel at store no s would be directly controllable by the store manager, and would therefore be included when computing the profit margin controllable by the manager. The other costs listed would either be allocated from a central source (A), not directly related to the individual store (B and C), or be an expense that affects the overall profitability of the company, rather than just one store (D).

Thurmon Retail Has Three Stores in West Virginia