Which of the following is an indirect fixed cost?
A)depreciation on a profit centre's machinery
B)depreciation on the company's building which houses several profit centres
C)health insurance costs for employees
D)profit centre supervisory salaries

Question

Quizplus · Accepted Answer

Depreciation on the company's building is an indirect fixed cost because it cannot be directly tied to a specific profit centre or product. It is a cost that benefits all of the profit centres housed in the building.

Which of the Following Is an Indirect Fixed Cost