Which of the Following Is a True Statement Pertaining to Segment

question 47

Multiple Choice

Which of the following is a true statement pertaining to segment income statements?

• A)Present the individual segments' net income.
• B)Variable costs should be reported by segment.
• C)Do not present a segment margin.
• D)Do not include arbitrarily allocated common fixed expenses when calculating segment margin.

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Definitions:

Marginal Product of Labor

This refers to the additional output a firm gains from hiring one more unit of labor, holding all other factors constant.

Surplus

Surplus refers to the situation where the quantity of a product or service supplied in a market exceeds the quantity demanded at the current price.

Compensating Differentials

Wage differentials that compensate workers for the job attributes, such as difficulty or undesirable conditions.

Salary

Regular payment from an employer to an employee, typically expressed on an annual basis but paid monthly or biweekly.