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Steel Fabricating,Inc.manufactures furniture at its plants in Akron,Greensboro,and Schenectady.The company prepares monthly income statements segmented by plant.These income statements are organized to disclose contribution margin,performance margin,and responsibility margin for each plant,in addition to operating income for the company as a whole.
-Of the following,which should be classified as a common fixed cost?
A)Depreciation on the Schenectady factory.
B)Salaries of the plant managers.
C)Salaries of the company's legal staff.
D)Property taxes on the Akron factory.

Question

Quizplus · Accepted Answer

Salaries of the company's legal staff are considered common fixed costs because they are not directly attributable to any one plant but are shared across the entire company.

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