Fixed costs that are allocated among all departments are known as
A)direct fixed costs.
B)relevant fixed costs.
C)general fixed costs.
D)common fixed costs.

Question

Quizplus · Accepted Answer

Common fixed costs are those costs that are incurred for the benefit of multiple departments or segments within a company, and cannot be directly traced to a specific product or service. These costs are allocated among all departments based on a predetermined allocation method, such as square footage, headcount, or usage.

Fixed Costs That Are Allocated Among All Departments Are Known