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:

Cash Sales

Transactions in which payment is made in full at the time of the sale, typically in cash.

Petty Cash Fund

A small amount of cash on hand used for covering minor expenses, managed through a system of vouchers and replenishments.

Voucher System

A control mechanism in accounting where vouchers are used to authorize the payment of a liability; an internal control for cash disbursements.

Bank Deposit

A sum of money placed in an account with a banking institution, often earning interest.