Question 1

You have a client who operates a large upmarket grocery store that has a full range of departments.

The management has encountered difficulty in using accounting data as a basis for decisions as to

possible change in department's operations, product's marketing methods, and so forth.

Required

List several overhead costs, or costs that are not applicable to a particular department, and explain

how the existence of such costs (sometimes called common costs) complicates and limits the use of

accounting data in making decisions in such a store.