Which of the Following Is True of Segment Profitability Analysis

question 107

Multiple Choice

Which of the following is true of segment profitability analysis?

• A)It suggests eliminating all segments having positive margins.
• B)It includes the preparation of a segmented income statement.
• C)It traces common fixed costs to individual segments.
• D)It treats common fixed costs as avoidable costs.

---

Definitions:

Collective Bargaining

A process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights.

Escalator Clauses

Provisions in a contract that allow for an automatic increase in wages or prices under certain conditions.

Productivity Increases

An improvement in the efficiency of production, often measured by the amount of output per unit of input over a period.

Labor Union Membership

The affiliation of individual workers to an organized labor union, which represents their interests in negotiating wages, benefits, and working conditions with employers.