When a company discontinues a segment,total corporate costs may decrease in all of the following categories except
A)variable production costs.
B)allocated common costs.
C)direct fixed costs.
D)variable period costs.

Question

Quizplus · Accepted Answer

Allocated common costs are typically spread across various segments of a company and do not decrease simply because one segment is discontinued. These costs are shared across the company's operations and would remain until specifically reduced through other cost-cutting measures.

When a Company Discontinues a Segment,total Corporate Costs May Decrease