Classify each cost shown below according to the type of fixed cost that it reflects
-Depreciation on equipment used in multiple product lines
A) Direct Fixed Cost
B) Common Fixed Cost
C) Allocated Fixed Cost

Question

Quizplus · Accepted Answer

Depreciation on equipment used in multiple product lines is a common fixed cost because it is shared across different product lines and not directly attributable to a single product line.

Classify Each Cost Shown Below According to the Type of Fixed