Which of the following is not an indirect fixed cost?
A) Company president's salary
B) Depreciation on the company building housing several profit centers
C) Company personnel department costs
D) Profit center supervisory salaries

Question

Quizplus · Accepted Answer

Indirect fixed costs are costs that cannot be directly traced to a single product or department but are necessary for the business as a whole. Profit center supervisory salaries can be directly attributed to specific profit centers, making them direct costs, not indirect fixed costs.

Which of the Following Is Not an Indirect Fixed Cost