Confectionery Corporation has a number of store locations throughout North America. In income statements segmented by store, which of the following would be considered a common fixed cost with respect to the stores(A) store manager salaries
(B) store building depreciation expense
(C) the cost of corporate advertising aired during the Super Bowl
(D) cost of goods sold at each store
(E) none of the above

Respuesta :

Answer: (C) The cost of corporate advertising aired during the Super Bowl

Explanation:

  A common fixed cost is one of the type of fixed cost which is not specifically traceable in an organizational segmentation and it basically support the various types of operations in the segment.

 This type of cost helps in the funding process by providing the various types of resources, funds and the activities in an organization.

 According to the given scenario, the confectionery corporation is open the large number of store in the location across the north america. The corporate cost advertising publicity at the time if super bowl is one of the common fixed cost in the store.  

 Therefore,, Option (C) is correct answer.