Which of the Following Is Not an Indirect Fixed Cost

question 196

Multiple Choice

Which of the following is not an indirect fixed cost?

• A) Company president's salary
• B) Depreciation on the company building housing several profit centers
• C) Company personnel department costs
• D) Profit center supervisory salaries

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Definitions:

Differentiation Value

The unique attributes or benefits that make a product or service stand out from competitors, enhancing its market appeal.

Useful Life

The estimated period over which a fixed asset is expected to be usable by the organization, impacting its depreciation calculation.

Operating Costs

The ongoing expenses related to running a business, excluding the cost of goods sold, such as rent, utilities, and payroll.

Service Hours

The total hours spent by an organization or employee providing services to clients or working on service-related tasks.