type of costs are the marketing costs?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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MyCarShop is a chain of used car-dealers with showrooms in Leicester, Derby and Chesterfield and a separate Head Office. The management accountant is reviewing the profitability of each showroom. The rent and staff costs incurred by each showroom can be saved in the event of closure. Marketing costs are allocated to each showroom, but would not be saved, if any shop were to close. Head office cost is charged at a rate of 7% of sales.

The data regarding costs and sales revenues for each showroom are presented below.

 

£000

Leicester

Derby

Chesterfield

Sales

1,500

1,375

1,230

Cost of sales

1,250

1,240

1,184

Rent of showroom

50

67

78

Showroom staff salaries

21

28

12

Marketing costs

45

22

18

 

 

What type of costs are the marketing costs?

 

 

 

 

 

 

 

  a.

Opportunity

  b.

Relevant 

  c.

Sunk 

  d.

Non relevant 

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