The following cost data pertain to the operations of Polek Department Stores, Inc., for the month of March. The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores.
-What is the total amount of the costs listed above that are NOT direct costs of the Northridge Store?
A) $39,000
B) $66,000
C) $79,000
D) $147,000

Question

The following cost data pertain to the operations of Polek Department Stores, Inc., for the month of March.  The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores.
-What is the total amount of the costs listed above that are NOT direct costs of the Northridge Store?
A) $39,000 
B) $66,000 
C) $79,000 
D) $147,000

Quizplus · Accepted Answer

The costs of $147,000 for advertising, central warehouse expense, corporate office expense, and office salaries are not direct costs of the Northridge Store.

The Following Cost Data Pertain to the Operations of Polek