Which of the Following Is a Common Fixed Cost to the Sales

question 43

Multiple Choice

Which of the following is a common fixed cost to the sales departments in a department store?

• A) Salaries of store security personnel.
• B) Salaries of sales department managers.
• C) Cost of goods sold.
• D) Depreciation on fixtures used exclusively in a specific sales department.

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Definitions:

Worksheet

A document or tool used by accountants to prepare financial statements and ensure that debits and credits are in balance, not typically part of the formal accounting records.

Net Loss

The amount by which expenses exceed revenues during a specific period, indicating a financial loss.

Income Statement Columns

The arrangement in the income statement that categorizes financial data, such as revenues, expenses, and net income, to convey a company's financial performance over a period.

Adjustments Columns

Sections within financial statements or ledgers where adjustments are recorded to ensure they accurately reflect the financial position at period-end.