Essential College Supplies (ECS) is a store on the campus on a large Midwestern university. The store

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Essential College Supplies (ECS) is a store on the campus on a large Midwestern university. The store has both an apparel section (t-shirts with the school logo) and a convenience section. ECS reports revenues for the apparel section separately from the convenience section.


Required

Classify each cost item (A–H) as follows:
a. Direct or indirect (D or I) costs of the total number of t-shirts sold.
b. Variable or fixed (V or F) costs of how the total costs of the apparel section change as the total number  of t-shirts sold changes. (If in doubt, select on the basis of whether the total costs will change substantially  if there is a large change in the total number of t-shirts sold.)  You will have two answers (D or I; V or F) for each of the following items:

Cost Item A. Annual fee for licensing the school logo B. Cost of store manager's salary C. Costs of t-shirts


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Horngrens Cost Accounting A Managerial Emphasis

ISBN: 9780135628478

17th Edition

Authors: Srikant M. Datar, Madhav V. Rajan

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