What are traceable fixed costs?
Also question is, what are common fixed costs?
Common Fixed Costs These are costs that fund people, resources or activities that support more than one segment within the business. For example, the CEO's salary would be a common fixed cost, as her salary is not traceable to any specific segment within the business.
Furthermore, what is the difference between traceable costs and common costs? Difference between traceable and common costs Traceable costs are costs that can be assigned directly to specific cost objects based on the cause -effect relationship between the cost object and the cost. Common costs are costs that cannot be attributed to specific cost objects.
Also asked, how are traceable costs common?
Explanation:Traceable cost can become common if the segment is divided further into the segments as for example if segment C starts new product B along with existing product A then it costs may become common to the both of the products.
Are salaries a fixed cost?
Fixed costs are consistent in any given period. Variable costs fluctuate according to the amount of output produced. If you pay an employee a salary that isn't dependent on the hours worked, that's a fixed cost. Other types of compensation, such as piecework or commissions are variable.