Fixed costs that are not traceable to the segments and would remain even if one of the segments was eliminated are called:
A) uncertain expenses.
B) total fixed expenses.
C) direct fixed expenses.
D) common fixed expenses.
E) marginal expenses.

Question

Quizplus · Accepted Answer

Common fixed expenses are costs that cannot be allocated to specific segments and would remain even if one of the segments was eliminated. Examples of common fixed expenses include rent, property taxes, and salaries of top executives.

Fixed Costs That Are Not Traceable to the Segments and Would