Identify the common fixed cost in the sales departments.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 22, Problem 1STQ

To determine

Identify the common fixed cost in the sales departments.

Expert Solution & Answer

Answer to Problem 1STQ

a. Salaries of store security personnel.

Explanation of Solution

a. The Salaries of the store security personnel comes under the fixed cost, because the store security personnel salaries are fixed and it do not fluctuate with the volume of sales.
b. The Salaries of the sales department managers differs according to the volume of sales, because their salaries would be given based on their sales target. Hence it is a variable cost.
c. Cost of goods sold is the total of all the expenses incurred by a company to sell the goods during the given period. Hence, it is a variable cost and it differs with the volume of sales.
d. The Depreciation on fixtures used exclusively in a specific sales department comes under the variable cost because the Depreciation on fixtures differs accordingly with the volume of sales (Or output).

From the above explanation it is clear that option b, c and d are incorrect only option (a) is correct.

Conclusion

Hence, the correct option is option a.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

No wrong answer

L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: Now assume that 5% of the L.L. Bean boots are returned by customers for various reasons. L. Bean has a 100% refund policy for returns, no matter what the reason. What would the journal entry be to accrue L.L. Bean's sales returns for this one pair of boots?

The following data were taken from the records of Splish Brothers Company for the fiscal year ended June 30, 2025. Raw Materials Inventory 7/1/24 $58,100 Accounts Receivable $28,000 Raw Materials Inventory 6/30/25 46,600 Factory Insurance 4,800 Finished Goods Inventory 7/1/24 Finished Goods Inventory 6/30/25 99,700 Factory Machinery Depreciation 17,100 21,900 Factory Utilities 29,400 Work in Process Inventory 7/1/24 21,200 Office Utilities Expense 9,350 Work in Process Inventory 6/30/25 29,400 Sales Revenue 560,500 Direct Labor 147,550 Sales Discounts 4,700 Indirect Labor 25,360 Factory Manager's Salary 63,400 Factory Property Taxes 9,910 Factory Repairs 2,500 Raw Materials Purchases 97,300 Cash 39,200 SPLISH BROTHERS COMPANY Income Statement (Partial) $

Answer 2

Question

Chapter 22, Problem 1STQ

To determine

Identify the common fixed cost in the sales departments.

Expert Solution & Answer

Answer to Problem 1STQ

a. Salaries of store security personnel.

Explanation of Solution

a. The Salaries of the store security personnel comes under the fixed cost, because the store security personnel salaries are fixed and it do not fluctuate with the volume of sales.
b. The Salaries of the sales department managers differs according to the volume of sales, because their salaries would be given based on their sales target. Hence it is a variable cost.
c. Cost of goods sold is the total of all the expenses incurred by a company to sell the goods during the given period. Hence, it is a variable cost and it differs with the volume of sales.
d. The Depreciation on fixtures used exclusively in a specific sales department comes under the variable cost because the Depreciation on fixtures differs accordingly with the volume of sales (Or output).

From the above explanation it is clear that option b, c and d are incorrect only option (a) is correct.

Conclusion

Hence, the correct option is option a.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 22, Problem 1STQ

To determine

Identify the common fixed cost in the sales departments.

Expert Solution & Answer

Answer to Problem 1STQ

a. Salaries of store security personnel.

Explanation of Solution

a. The Salaries of the store security personnel comes under the fixed cost, because the store security personnel salaries are fixed and it do not fluctuate with the volume of sales.
b. The Salaries of the sales department managers differs according to the volume of sales, because their salaries would be given based on their sales target. Hence it is a variable cost.
c. Cost of goods sold is the total of all the expenses incurred by a company to sell the goods during the given period. Hence, it is a variable cost and it differs with the volume of sales.
d. The Depreciation on fixtures used exclusively in a specific sales department comes under the variable cost because the Depreciation on fixtures differs accordingly with the volume of sales (Or output).

From the above explanation it is clear that option b, c and d are incorrect only option (a) is correct.

Conclusion

Hence, the correct option is option a.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 22, Problem 1STQ

To determine

Identify the common fixed cost in the sales departments.

Expert Solution & Answer

Answer to Problem 1STQ

a. Salaries of store security personnel.

Explanation of Solution

a. The Salaries of the store security personnel comes under the fixed cost, because the store security personnel salaries are fixed and it do not fluctuate with the volume of sales.
b. The Salaries of the sales department managers differs according to the volume of sales, because their salaries would be given based on their sales target. Hence it is a variable cost.
c. Cost of goods sold is the total of all the expenses incurred by a company to sell the goods during the given period. Hence, it is a variable cost and it differs with the volume of sales.
d. The Depreciation on fixtures used exclusively in a specific sales department comes under the variable cost because the Depreciation on fixtures differs accordingly with the volume of sales (Or output).

From the above explanation it is clear that option b, c and d are incorrect only option (a) is correct.

Conclusion

Hence, the correct option is option a.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 22, Problem 1STQ

To determine

Identify the common fixed cost in the sales departments.

Expert Solution & Answer

Answer to Problem 1STQ

a. Salaries of store security personnel.

Explanation of Solution

a. The Salaries of the store security personnel comes under the fixed cost, because the store security personnel salaries are fixed and it do not fluctuate with the volume of sales.
b. The Salaries of the sales department managers differs according to the volume of sales, because their salaries would be given based on their sales target. Hence it is a variable cost.
c. Cost of goods sold is the total of all the expenses incurred by a company to sell the goods during the given period. Hence, it is a variable cost and it differs with the volume of sales.
d. The Depreciation on fixtures used exclusively in a specific sales department comes under the variable cost because the Depreciation on fixtures differs accordingly with the volume of sales (Or output).

From the above explanation it is clear that option b, c and d are incorrect only option (a) is correct.

Conclusion

Hence, the correct option is option a.

Answer 6

Chapter 22, Problem 1STQ

To determine

Identify the common fixed cost in the sales departments.

Expert Solution & Answer

Answer to Problem 1STQ

a. Salaries of store security personnel.

Explanation of Solution

a. The Salaries of the store security personnel comes under the fixed cost, because the store security personnel salaries are fixed and it do not fluctuate with the volume of sales.
b. The Salaries of the sales department managers differs according to the volume of sales, because their salaries would be given based on their sales target. Hence it is a variable cost.
c. Cost of goods sold is the total of all the expenses incurred by a company to sell the goods during the given period. Hence, it is a variable cost and it differs with the volume of sales.
d. The Depreciation on fixtures used exclusively in a specific sales department comes under the variable cost because the Depreciation on fixtures differs accordingly with the volume of sales (Or output).

From the above explanation it is clear that option b, c and d are incorrect only option (a) is correct.

Conclusion

Hence, the correct option is option a.

Answer 7

Chapter 22, Problem 1STQ

To determine

Identify the common fixed cost in the sales departments.

Answer 8

Expert Solution & Answer

Answer to Problem 1STQ

a. Salaries of store security personnel.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

a. The Salaries of the store security personnel comes under the fixed cost, because the store security personnel salaries are fixed and it do not fluctuate with the volume of sales.
b. The Salaries of the sales department managers differs according to the volume of sales, because their salaries would be given based on their sales target. Hence it is a variable cost.
c. Cost of goods sold is the total of all the expenses incurred by a company to sell the goods during the given period. Hence, it is a variable cost and it differs with the volume of sales.
d. The Depreciation on fixtures used exclusively in a specific sales department comes under the variable cost because the Depreciation on fixtures differs accordingly with the volume of sales (Or output).

From the above explanation it is clear that option b, c and d are incorrect only option (a) is correct.