Assume You Are Preparing Income Statements for Different Segments

question 6

Multiple Choice

Assume you are preparing income statements for different segments.Which of the following 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:

Continuous Spectrum

A seamless spectrum of light (or other electromagnetic radiation) in which every wavelength within a certain range is represented.

Energy Level

The specific amount of energy an electron can have when occupying a certain orbital in an atom.

Atom

The basic unit of a chemical element, consisting of a nucleus of protons and neutrons, and electrons orbiting the nucleus.

Spectrum Color

The band of colors produced when light is separated into its component wavelengths, visible as when passing through a prism.