Responsibility Income Statement-Cost Classification

question 26

Essay

Responsibility income statement-cost classification
Milton's,a large department store,prepares income statements by sales department.These statements follow the contribution margin approach,showing contribution margin and responsibility margin for each profit center as well as monthly income from operations for the store.Indicate the classification of each of the costs listed below by inserting the appropriate code letters in the space provided. Costs
____ (a)The cost of merchandise sold in the Women's Sportswear Department.
____ (b)Advertising a sale in the Housewares Department (classify as a fixed cost).
____ (c)Depreciation on equipment used in the Automotive Service Department.
____ (d)Depreciation on the store's heating and air conditioning system.
____ (e)Monthly salary of the manager of the Toy Department.
____ (f)Sales taxes collected from customers and paid to local tax authorities.
____ (g)Monthly salaries of store security guards.

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Definitions:

Rh Incompatibility

A condition where an Rh-negative mother produces antibodies against Rh-positive fetal blood cells, potentially causing fetal anemia.

Rh-positive

Refers to individuals whose red blood cells contain the Rh factor, making them capable of transmitting this characteristic.

Rh-negative

A blood type classification indicating the absence of the Rh factor on the surface of red blood cells, which can be important in blood transfusion and pregnancy.

Mother

A female parent or the woman who has given birth to or raised a child.