In a responsibility income statement,the term common fixed costs describes fixed costs that:
A)Are under the manager's immediate control.
B)Jointly benefit several responsibility centers of the business.
C)Occur in virtually every responsibility center of the business (such as salaries).
D)Are easily traceable to specific profit centers.

Question

Quizplus · Accepted Answer

Common fixed costs are those fixed costs that cannot be allocated to only one responsibility center, but instead, benefit two or more responsibility centers within a business. Examples of common fixed costs include rent, property taxes, insurance, and salaries of top management.

In a Responsibility Income Statement,the Term Common Fixed Costs Describes