Common Allocated Fixed Costs Are an Issue in Evaluating Segment

question 80

Essay

Common allocated fixed costs are an issue in evaluating segment performance.ans the following questions relating to common fixed costs.
a.What are two other terms used in referring to common costs?
b.Where are common allocated fixed costs shown on a segment margin income statement?
c.When do traceable fixed costs become common costs?

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Definitions:

Controllability

The degree to which an individual can influence or manage the outcomes or conditions in their life or environment.

Predictability

The extent to which future events are predictable based on present or past information.

Conservation

In psychology, the concept that a child recognizes that quantity does not change with physical rearrangement; in environmental science, the protection of natural resources.

Public Commitments

Decisions or promises made in a public setting, which are more likely to be upheld due to the added pressure of social accountability.