Higado Confectionery Corporation has a number of store locations throughout North America. In income statements segmented by store, which of the following would be considered a common fixed cost?
A) store manager salaries
B) store building depreciation expense
C) the cost of corporate advertising aired during the Super Bowl
D) all of these

Question

Quizplus · Accepted Answer

The cost of corporate advertising aired during the Super Bowl is a common fixed cost because it benefits all store locations and cannot be directly traced to any single store.

Higado Confectionery Corporation Has a Number of Store Locations Throughout