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

---

Definitions:

Single-Step Income Statement

A simplified income statement that calculates net income by subtracting expenses from revenues in one step.

Statement of Owner's Equity

A financial statement detailing changes in the equity of a company's owner(s) over time, including contributions, withdrawals, and the impacts of net income or loss.

Administrative Expenses

Overhead expenses not directly attributable to specific business operations, such as salaries of senior executives.

Periodic Inventory System

A method of inventory valuation that requires a physical count to determine the end-of-period inventory and cost of goods sold.