Thurmon Retail has three stores in West Virginia. Which of the following costs would likely be excluded when computing the profit margin controllable by store no. 3's manager?
A) Hourly labor costs incurred by personnel at store no. 3.
B) Property taxes attributable to store no. 3.
C) The salary of Thurmon's president.
D) The salary of store no. 3's manager.
E) All answers except hourly labor costs incurred by personnel at store no. 3 are correct.

Question

Quizplus · Accepted Answer

The salary of Thurmon's president would likely be excluded from the profit margin controllable by store no. 3's manager because it is a corporate-level expense, not directly controllable at the store level. Hourly labor costs, property taxes attributable to the store, and the salary of the store's manager are all costs that the store manager can influence through management decisions.

Thurmon Retail Has Three Stores in West Virginia