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Horngren'S Financial And Managerial Accounting
Found in: Page 1119

Short Answer

A chain of convenience stores has one manager per store who is paid a monthly salary. Relative to the number of stores, is the manager’s salary fixed or variable? Why?

The manager’s salary is a variable cost.

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Step by Step Solution

Variable cost

The cost which is function of other variable is known as variable cost

Reasoning  

The manager’s salary is a variable cost because the salary of manager is dependent upon the number of stores. If the number of stores increase or decrease the manager’s salary will also change, therefore manager salary is variable.

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