Which term best describes fixed costs that can be directly traced to individual segments?
A) contribution margin
B) direct fixed expenses
C) overall fixed expenses
D) common fixed expenses

Question

Quizplus · Accepted Answer

Direct fixed expenses are costs that can be specifically identified with a particular segment, product or service. Contribution margin refers to the sales revenue minus the variable expenses, while overall fixed expenses and common fixed expenses refer to company-wide fixed costs that cannot be attributed to individual segments.

Which Term Best Describes Fixed Costs That Can Be Directly