The Following Cost Data Pertain to the Operations of Rademaker

question 154

Multiple Choice

The following cost data pertain to the operations of Rademaker Department Stores,Inc. ,for the month of March. The Northridge Store is just one of many stores owned and operated by the company.The Cosmetics Department is one of many departments at the Northridge Store.The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are NOT direct costs of the Northridge Store?

• A)$172,000
• B)$33,000
• C)$80,000
• D)$94,000

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Definitions:

Annual Interest Expense

The total amount of interest a company expects to pay on its debts over a year.

$100,000 Bond

A debt instrument issued by a corporation or government entity, with a principal amount of $100,000, to raise funds from investors.

Premium

An amount paid in addition to a standard price or rate, or the amount above par value for a security.

Bond Interest Expense

The cost incurred by an issuer of bonds for the interest payments made to bondholders over a period.