Higado Confectionery Corporation has a number of store locations throughout North America. In income statements segmented by store, which of the following would be considered a common fixed cost with respect to the stores?
A) store manager salaries
B) store building depreciation expense
C) the cost of corporate advertising aired during the Super Bowl
D) cost of goods sold at each store

Question

Quizplus · Accepted Answer

The cost of corporate advertising aired during the Super Bowl would be considered a common fixed cost with respect to the stores because it benefits all the stores and is not directly attributable to any single store's operations.

Higado Confectionery Corporation Has a Number of Store Locations Throughout