Common fixed costs are most likely the responsibility of
A)top management only.
B)managers who have no control of them.
C)investment center managers only.
D)cost center managers only.

Question

Quizplus · Accepted Answer

Common fixed costs are costs that cannot be directly traced to a specific product or service, but rather support the overall business operations. As such, they are the responsibility of top management as they make decisions regarding the allocation of resources to various departments, products, and services. Managers who have no control over these costs cannot be held responsible for them, and investment center and cost center managers may only have partial responsibility.

Common Fixed Costs Are Most Likely the Responsibility of