A segment's contribution margin minus its traceable fixed expenses equals the segment margin. Allocating a...
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Accounting
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. Multiple Choice The true statements are: #1, #2, and #4. The true statements are: #1, #2, #3, and #4. The true statements are: #1 and #2. The true statements are: #1, #2, and #3.
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