When a Company Discontinues a Segment,total Corporate Costs May Decrease

question 105

Multiple Choice

When a company discontinues a segment,total corporate costs may decrease in all of the following categories except

• A)variable production costs.
• B)allocated common costs.
• C)direct fixed costs.
• D)variable period costs.

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Definitions:

Fair Value

The estimated market value of an asset or liability, based on current prices in an active market.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period, highlighting the company's financial performance.

Available-For-Sale Investments

A classification for financial assets representing securities that are not classified as held-to-maturity or trading securities, marked to market with changes in value reflected in other comprehensive income.

Organizational Structure

The system that outlines how certain activities are directed in order to achieve the goals of an organization, including the roles, responsibilities, and authority of employees within the organization.