(Appendix 6A)If a cost object such as a product or customer has a negative red margin, then:
A)its green margin will be positive.
B)its green margin may be positive, negative, or zero.
C)its green margin will be negative.
D)its green margin will be zero.

Question

Quizplus · Accepted Answer

A negative red margin indicates that the cost object is not covering its direct costs, but the green margin, which includes indirect costs, can vary depending on the allocation of those costs.

(Appendix 6A)If a Cost Object Such as a Product or Customer