Responsibility Income Statement-Cost Classification

question 78

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:

Nonprobability Sampling

A sampling method where elements of the population do not have a known or equal chance of being selected, often used for exploratory research or when probability sampling is not feasible.

Probability Sampling

A sampling method that gives every member of the population a known chance of being selected.

Public Opinion Survey

A systematic method of collecting and analyzing individuals' views towards various topics, often used in political science and marketing.

Sampling

The process of selecting a subset of individuals, objects, or observations from a larger population for the purpose of making inferences about the population.