A manager must pay a $500 annual fee to the state in order to obtain a license to serve alcohol. What type of "Other expense" is the amount paid for the license?

Question

Quizplus · Accepted Answer

The $500 annual fee for a license to serve alcohol is considered a non-controllable, fixed expense because the manager cannot change or avoid this cost, and it does not vary with the level of business activity.

A Manager Must Pay a $500 Annual Fee to the State