Question

g Each division has a manager who is paid a salary of $130,000 annually and one assistant manager who is paid $70,000 annually How much of the salaries above are common fixed expenses?

Answer 1

Answer:

$0

Explanation:

Common fixed expenses are expenses that cannot be traced to any specific division, business unit or store/office within a larger company. In this case, each division has its own manager and assistant manager, but their salaries can be traced to the corresponding division, therefore, they cannot be considered common fixed expenses. Examples of common fixed expenses are the CEO's salary (or any other upper management or board of directors), their assistants or certain administrative costs that are incurred by them.