A segment margin income statement excludes all ________ costs in the calculation of the segment margin.
A)selling
B)traceable
C)fixed
D)allocated

Question

Quizplus · Accepted Answer

A segment margin income statement excludes all allocated costs in the calculation of the segment margin. Allocated costs are those that are distributed among different segments or departments within a company, often based on estimates or allocations rather than direct measurements of actual usage or benefit. This exclusion helps in assessing the performance of a segment based on the costs that are directly traceable to it, providing a clearer picture of its profitability.

A Segment Margin Income Statement Excludes All ________ Costs in the Calculation