I have a question about fixed cost. I am asked to calculate the accounting and audit cost under fix cost section and it is for each of the 12 months. Accounting salary is $6,000 per month. In addition to the salary, there will be a cost for year-end audit and it is estimated to be $15,000. I put in $6000 for each of the 12 month but am not sure about the auditing cost. The instruction I was given says : Will cost 15k so I am assuming the expense is being accrued and therefore expensed in December as an adjusting entry. How should I put in this 15,000 correctly in financial statement? Do I distribute $1250 for each of the 12 month? Or do I add the total $15,000 to the month of December? Or do I omit it?