When Assessing Segment Performance, Indirect Costs Should

question 31

Multiple Choice

When assessing segment performance, indirect costs should:

• A) Be minimized
• B) Not be allocated
• C) Be quantified and allocated proportionally
• D) Be turned into direct costs
• E) Be maximized and then subtracted from direct costs

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Definitions:

GATT

The General Agreement on Tariffs and Trade, an international treaty designed to encourage international trade by reducing trade barriers and tariffs.

Actionable Subsidy

A financial contribution provided by a government that is subject to legal action or dispute due to its trade-distorting effects.

Indirect Subsidy

Financial support or assistance given indirectly through actions such as tax breaks or other benefits that reduce the cost or increase the revenue of certain entities.

Basic Types

Denotes fundamental categories or classifications within a broader concept, subject, or field.