[The Following Information Applies to the Questions Displayed Below

question 38

Multiple Choice

[The following information applies to the questions displayed below.]
Patterson's Department Store prepares monthly income statements by sales departments.These income statements are organized to show contribution margin,performance margin,and responsibility margin for each sales department,as well as operating income for the store as a whole.
-The monthly salaries of the employees of the store's Accounting Department should be classified as a:

• A)Common fixed cost.
• B)Traceable fixed cost.
• C)Committed fixed cost.
• D)Controllable fixed cost.

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Definitions:

Annual Report

Summary of a firm’s financial information, products, and growth plans for owners and potential investors.

Income Statement

A financial report that shows an organization’s profitability over a period of time—month, quarter, or year.