Common costs:
A) are not easily related to a segment's activities.
B) are easily related to a segment's activities.
C) are charged to a company's operating segments when preparing a segmented income statement.
D) are not charged to a company's operating segments when preparing a segmented income statement.
E) are not easily related to a segment's activities and also are not charged to a company's operating segments when preparing a segmented income statement.

Question

Quizplus · Accepted Answer

Common costs are not easily related to a specific segment's activities because they benefit multiple segments or the entire company, and they are not charged to a company's operating segments when preparing a segmented income statement to avoid distorting the financial performance of individual segments.

Common Costs