Which of the following statements is true? There may be more than one answer: Po

Question

Which of the following statements is true? There may be more than one answer: Possible answers: A segment's contribution margin minus its traceable fixed expenses equals the segment margin. Allocating a portion of common fixed costs to a segments real costs may make an otherwise profitable segment appear to be unprofitable. A company's common fixed costs should be evenly allocated to business segments when computing the dollar sales for a segment to break break even. A segment's traceable fixed costs should include only those costs that will disappear over time if the segment disappears.

Explanation / Answer

The true statements are

Statement 12 and 4 are true

The true statements are

1. A segment's contribution margin minus its traceable fixed expenses equals the segment margin.
2. Allocating a portion of common fixed costs to a segments real costs may make an otherwise profitable segment appear to be unprofitable
3. segment's traceable fixed costs should include only those costs that will disappear over time if the segment disappears

Statement 12 and 4 are true

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.