Caution Should Be Taken When Interpreting a Segment Margin Income

question 10

Multiple Choice

Caution should be taken when interpreting a segment margin income statement because:

• A)revenues may be based on transfer prices.
• B)the interactive effects among responsibility centers are generally not clearly captured.
• C)expenses may be a result of subjective allocation of jointly incurred costs.
• D)All of the above are correct.

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Definitions:

Sexual Stimuli

Any object, image, thought, or situation that provokes sexual arousal.

Pleasant Words

Words that evoke positive emotions or connotations.

Subliminal

Pertaining to stimuli or signals that are below the threshold of human perception but can influence thoughts, feelings, or actions.

Unpleasant Word

A term that evokes negative feelings or associations.