Which Is NOT a Fixed Cost Controllable by a Segment

question 147

Multiple Choice

Which is NOT a fixed cost controllable by a segment manager?

• A)salespersons' salaries for segment
• B)advertising costs in local paper to promote segment
• C)training costs for new employees at segment
• D)segment manager's salary

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Definitions:

Book Depreciation

The method of allocating the cost of a tangible asset over its useful life for accounting and tax purposes.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income level, type of income, and other factors.

Current Tax Expense

The amount of income taxes a company is expected to pay in the current year, reflecting its taxable earnings.

Pre-Tax Book Income

The income of a company before taxes are applied, calculated according to accounting standards.