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Common allocated fixed costs are an issue in evaluating segment performance. Answer the following ...
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Common allocated fixed costs are an issue in evaluating segment performance. Answer the following ...
Common allocated fixed costs are an issue in evaluating segment performance. Answer the following questions relating to common fixed costs.
a.
What are two other terms used in referring to common costs?
b.
Where are common allocated fixed costs shown on a segment margin income
statement?
c.
When do traceable fixed costs become common costs?
Textbook
Managerial Accounting
Edition:
4
th
Author:
Davis
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a.
Two other terms used in referring to common costs are allocated costs and
unavoidable costs.
b.
Common allocated fixed costs are shown only in the corporate total column. They
should not appear in the segment analysis of individual segments.
c.
As an organization is broken down into finer segments, costs that were traceable
fixed costs at one level may become common fixed costs at a lower level.
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dmalex13
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Thanks
SUmmerPeople
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I appreciate what you did here, answered it right
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Helped a lot
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