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Patterson's Department Store prepares monthly income statements by sales departments.These income statements are organized to show contribution margin,performance margin,and responsibility margin for each sales department,as well as operating income for the store as a whole.
-The monthly salaries of the employees of the store's Accounting Department should be classified as a:
A)Common fixed cost.
B)Traceable fixed cost.
C)Committed fixed cost.
D)Controllable fixed cost.

Question

Quizplus · Accepted Answer

The salaries of the employees of the Accounting Department are common fixed costs as they cannot be directly traced to any one sales department and are incurred regardless of the level of sales activity.

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