41 Costs for a department store in Austin Texas are listed b

41) Costs for a department store in Austin, Texas are listed below. The headquarters located in Dallas, Texas. From the view of the store manager in Austin, following identify each cost as A. Variable cost B. Fixed cost controllable by store manager C. Fixed cost controllable by others (not store manager) one of the D. Unallocated cost _ 1 . Insurance on Austin store 2. Sal 3. Depreciation expense on Austin store 4. Corporate-level advertising costs es supervisor\'s salary in Austin store -5. Temporary sales staff wages in Austin store w) 6. Cost of merchandise sold in Austin store 7. Local advertising costs for Austin store 8. CEO salary 9. Salary of store manager in Austin store 10. Public relations department at corporate headquarters 11. Supplies for break room in Austin store 12 Salaries of attorneys at corporate headquarters 13. Salaries of accountants at corporate headquarters 14. Wages of janitors at Austin store -15. wages of janitors at corporate headquarters 1. C 2. B 3. C 4. D 5. A 6. A 7. B 8. D 9. C 10. D 12. D 13. D 14. A 15. D Diff: 2 LO: 9-5 AACSB: Analytic skills Learning Outcome: Discuss responsibility accounting

Solution

Point C says Fixed cost controllable by others are those costs which are fixed cost to the store but not in control of the Store Manager. Controlled by the other authorities outside the stores control but essential for the store like insurance expenses, Fixed assets depreciation expenses, etc.

Point D says Unallocated Costs, these are those costs which are commonly expended by the company for all the stores/departments. These costs are considered while calculating the overall Income of the company. These costs are not allocated to the departments/stores. Like costs at the corporate level - management salaries, advertisements, etc.