Identify the common fixed cost in the sales departments.

Question

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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.

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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.

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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.

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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.

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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.