$$\text { Reference: } 12 - 10$$ Harstin Corporation Has Provided the Following Data

question 29

True/False

$$\text { Reference: } 12 - 10$$ Harstin Corporation has provided the following data: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 625,000 \\\hline \text { Gross margin } & 70,000 \\\hline \text { Net operating income } & 50,000 \\\hline \text { Stockholders' equity } & 90,000 \\\hline \text { Average operating assets } & 250,000 \\\hline \text { Residual income } & 20,000 \\\hline\end{array}$$
-For purposes of determining the costs to be included in each segment's performance evaluations, in general common fixed costs should be allocated to each segment and traceable fixed costs should not be assigned to segments.

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Definitions:

Emotions

Complex psychological states involving physiological arousal, feelings, cognitive processes, and behavioral reactions.

Feedback System

A process or mechanism by which information about the outcomes of actions is returned to the originator, enabling adjustment or improvement of future actions.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.

Disgust

A strong sensation of aversion or repulsion, often elicited by unpleasant tastes, smells, or sights.