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?
A)store manager salaries
B)store building depreciation expense
C)the cost of corporate advertising aired during the Super Bowl
D)all of the above

Question

Quizplus · Accepted Answer

Common fixed costs are those that cannot be directly traced to a specific segment or store. The cost of corporate advertising aired during the Super Bowl is a common fixed cost because it benefits the corporation as a whole and is not attributable to any single store.

Higado Confectionery Corporation Has a Number of Store Locations Throughout