Assume you are preparing income statements for different segments.Which of the following is NOT a fixed cost controllable by a segment manager?
A) salespersons' salaries for segment
B) advertising costs in local paper to promote segment
C) training costs for new employees at segment
D) segment manager's salary

Question

Quizplus · Accepted Answer

The segment manager's salary is not a fixed cost controllable by a segment manager because it is determined by the overall company's compensation policy and decisions made by executive management. The other options, salespersons' salaries, advertising costs, and training costs, are fixed costs that can be controlled by the segment manager.

Assume You Are Preparing Income Statements for Different Segments