A Segment Margin Income Statement Excludes All ________ Costs in the Calculation

question 88

Multiple Choice

A segment margin income statement excludes all ________ costs in the calculation of the segment margin.

• A)Selling
• B)Traceable
• C)Fixed
• D)Allocated

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale.

Variable Costs

Expenses that vary directly with the level of production or output, such as raw materials and labor costs.

Output

The total amount of goods or services produced by a company or an economy.

Total Variable Costs

The sum of all costs that vary with the level of production, such as materials and labor, as opposed to fixed costs which remain constant regardless of production level.