Department A covers one section of a large factory building.Which of the following costs is relevant to the decision to eliminate Department A?
A) Heating expenses of building allocated to Department A
B) General corporate overhead allocated to Department A
C) Depreciation Expense on store building allocated to Department A
D) Salary Expense of Supervisor in Department A; he only works in Department A

Question

Quizplus · Accepted Answer

The salary expense of the supervisor in Department A is relevant because eliminating the department would result in a cost savings of their salary. The other options are not directly related to the costs associated with Department A and do not change if the department is eliminated.

Department a Covers One Section of a Large Factory Building