Which of the following items is often mostdifficult to allocate to a particular segment?
A) Traceable fixed costs
B) Sales revenue
C) Common fixed costs
D) Variable costs

Question

Quizplus · Accepted Answer

Common fixed costs are those costs that cannot be directly traced to a particular segment, product or service. They are shared by multiple segments and need to be allocated based on some logical basis, such as sales revenue, number of employees, or production volume. This can make it difficult to accurately allocate these costs to a specific segment.

Which of the Following Items Is Often Mostdifficult to Allocate