Classifying Costs for Virginia's Neapolitan Store: A Guide
School
HEC Paris**We aren't endorsed by this school
Course
ACCOUNTING 1
Subject
Accounting
Date
Dec 10, 2024
Pages
1
Uploaded by JusticeMusic15712
Page 1of 1Virginia Adopted from Bhimani, Horngren, Datar & Foster. Management and cost accounting. Virginia operates large stores specialized in cultural goods. The Neapolitan store, Crescendo, has both a film (video/DVDs/Blu-Ray) section and a music section. Virginia reports revenues and costs separately for each store and each section. Required: Classify each of the following cost items of the Napoli store as: 1. Direct or indirect (D or I) costs with respect to the film section and the Napoli store; 2. Variable or fixed (V or F) costs with respect to how the total costs of the film section change and the Napoli store. Costs Film section Neapolitan Shop D or I V or F D or I V or F A. Annual fees paid to a film distributor (fixed amount, whatever the number of films sold/rent) B. Electricity costs of Crescendo store (single bill covers the entire Neapolitan store) C. Costs of films purchased for sale to customers D. Subscription to Video-Nuovo magazine for the staff E. Leasing of computer software used for financial budgeting at Virginia F. Cost of popcorn provided free to all customers of Crescendo G. Earthquake insurance policy for Crescendo store H. Salary and cost of social insurance cost for the assistant of Virginia’s CEO I. Freight-in costs of films purchased by Virginia’s Neapolitan Shop Texte
