Which of the following is a common fixed cost to the sales department in a department store? A. Salaries of store security personnel B. Salaries of sales department managers C. Cost of goods sold D. Depreciation on fixtures used exclusively in a specific sales department During the first quarter of its operation, Morris Mfg. Co. expects to sell 50,000 units and create an ending inventory of 20,000 units. Variable manufacturing costs are budgeted at $10 per unit, and fixed manufacturing costs at $100,000 per quarter. The company's treasure expects that 80 percent of the variable manufacturing costs will require each payment during the quarter and that 20 percent will be financed through accounts payable and accrued liabilities. Only 50 percent of the fixed manufacturing costs during the quarter will total: A. $800,000 B. $610,000 C. $600,000 D. $450,000 A subtotal used in evaluating the performance of a responsibility center manager, as distinct from the performance of the center, is: A. Contribution margin, less traceable fixed cots B. Sales, less committed costs C. Contribution margin, plus fixed costs deferred into inventory D. Contribution margin, less controllable fixed cost In preparing an income statement that measures contribution margin for a responsibility center, two concepts are applied in classifying costs. One is whether the costs are variable or fixed. The other is whether the costs are: A. Product costs or period costs B. Traceable to the responsibility center C. Under the control of the manager D. Transfer prices