Costs that would not be incurred if the segment were discontinued are called:
A) Avoidable common costs
B) Indirect segment costs
C) Variable segment costs
D) Both A and C

Question

Quizplus · Accepted Answer

Avoidable common costs, as the term implies, are costs that will be avoided (not incurred) if the segment is discontinued. In addition, variable costs are eliminated if the segment is discontinued.

Costs That Would Not Be Incurred If the Segment Were