Chapter 2 Cost

Annual retainer paid to a video distributor Band Box Entertainment (BBE) operates a large store in Atlanta, Georgia. The store has both a movie (DVD) section and a music (CD) section. BBE reports revenues for the movie section separately from the music section.

• Direct
• Indirect
• Fixed
• Variabel

Cost of store manager’s salary Band Box Entertainment (BBE) operates a large store in Atlanta, Georgia. The store has both a movie (DVD) section and a music (CD) section. BBE reports revenues for the movie section separately from the music section.

• Direct
• Indirect
• Fixed
• Variabel

Costs of DVDs purchased for sale to customers Band Box Entertainment (BBE) operates a large store in Atlanta, Georgia. The store has both a movie (DVD) section and a music (CD) section. BBE reports revenues for the movie section separately from the music section.

• Direct
• Indirect
• Fixed
• Variabel

Subscription to DVD Trends magazine Band Box Entertainment (BBE) operates a large store in Atlanta, Georgia. The store has both a movie (DVD) section and a music (CD) section. BBE reports revenues for the movie section separately from the music section.

• Direct
• Indirect
• Fixed
• Variabel

Leasing of computer software used for financial budgeting at the BBE store Band Box Entertainment (BBE) operates a large store in Atlanta, Georgia. The store has both a movie (DVD) section and a music (CD) section. BBE reports revenues for the movie section separately from the music section.

• Direct
• Indirect
• Fixed
• Variabel

Cost of popcorn provided free to all customers of the BBE store Band Box Entertainment (BBE) operates a large store in Atlanta, Georgia. The store has both a movie (DVD) section and a music (CD) section. BBE reports revenues for the movie section separately from the music section.

• Direct
• Indirect
• Fixed
• Variabel

Cost of cleaning the store every night after closing Band Box Entertainment (BBE) operates a large store in Atlanta, Georgia. The store has both a movie (DVD) section and a music (CD) section. BBE reports revenues for the movie section separately from the music section.

• Direct
• Indirect
• Fixed
• Variabel

Freight-in costs of DVDs purchased by BBE Band Box Entertainment (BBE) operates a large store in Atlanta, Georgia. The store has both a movie (DVD) section and a music (CD) section. BBE reports revenues for the movie section separately from the music section.

• Direct
• Indirect
• Fixed
• Variabel

Cost of fabric used on Recliners The Cooper Furniture Company of Potomac, Maryland, assembles two types of chairs (Recliners and Rockers). Separate assembly lines are used for each type of chair.

• Direct
• Indirect
• Fixed
• Variabel

Salary of public relations manager for Cooper Furniture The Cooper Furniture Company of Potomac, Maryland, assembles two types of chairs (Recliners and Rockers). Separate assembly lines are used for each type of chair.

• Direct
• Indirect
• Fixed
• Variabel