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Costs which are not direct costs

Question 3: (1 point)
The following cost data pertain to the operations of Quinonez Department Stores, Inc., for the month of September.
Corporate headquarters building lease $75,000
Cosmetics Department sales commissions-Northridge Store $3,400
Corporate legal office salaries $56,000
Store manager's salary-Northridge Store $12,000
Heating-Northridge Store $9,500
Cosmetics Department cost of sales-Northridge Store $35,000
Central warehouse lease cost $18,000
Store security-Northridge Store $13,000
Cosmetics Department manager's salary-Northridge Store $3,000

The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores.

What is the total amount of the costs listed above that are NOT direct costs of the Northridge Store?

(a) $149,000
(b) $143,800
(c) $160,500
(d) $244,000

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Costs which are incurred for Northridge Store would be the direct cost of Northridge Store. All the ...

Solution Summary

The solution explains how to determine which costs are not the direct costs of the store.