Question

Dc construction has two divisions: remodeling and new home construction. each division has an on-site supervisor who is paid a salary of $69,000 annually and one salaried estimator who is paid $49,500 annually. the corporate office has two office administrative assistants who are paid salaries of $56,250 and $36,000 annually. the president's salary is $184,500. how much of these salaries are common fixed expenses?

Answer 1

I would say only the president's salary would be a common fixed expense since it is not tied to a specific segment of the business. All the other salaries are tied to specific aspects of the business like the salaried estimator and an administrative assistant.