Question

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?

Answer 1

See explanation section

Step-by-step explanation:

Apart from Cosmetics Department sales commissions--Northridge Store, Cosmetics Department cost of sales--Northridge Store, Cosmetics Department manager's salary--Northridge Store, all the other costs are not direct cost. Corporate office salaries or expenses can not be a direct cost for a divisional or regional offices. Lease cost is not for Northridge store, therefore, it is not a direct cost. Store security, Store manager's salary, and heating expenses for Northridge are indirect costs.