Costs that can not be traced or reasonably allocated to a particular segment are called:
A) variable costs.
B) common costs.
C) segment costs.
D) fixed costs.

Question

Quizplus · Accepted Answer

Common costs are costs that cannot be traced or allocated to a particular segment. They are incurred for the benefit of more than one segment and cannot be attributed to any one segment directly. Variable costs, fixed costs, and segment costs can all be allocated or traced to a particular segment.

Costs That Can Not Be Traced or Reasonably Allocated to a Particular