A National Retail Company Has Segmented Its Income Statement by Sales

question 56

Multiple Choice

A national retail company has segmented its income statement by sales territories. If each sales territory statement is further segmented by individual stores, which of the following will most likely occur?

• A)some common fixed expenses in the sales territory segmented statement will become traceable fixed expenses in the individual store segmented statement.
• B)some traceable fixed expenses in the sales territory segmented statement will become common fixed expenses in the individual store segmented statement.
• C)the sum total of the individual stores' segment margins in each sales territory will be equal to the segment margin for the sales territory.
• D)the sum total of the sales territory segment margins will equal the total net operating income for the entire company.

---

Definitions:

French Impressionists

French Impressionists were a group of 19th-century artists who sought to capture fleeting moments and the effects of light using bold colors and innovative brushwork.

Realists

Individuals who base their perception of reality on the physical world, accepting it as it truly is, often in contrast to idealists.

Cubists

Artists associated with the Cubism movement, which emphasized abstract forms and the fragmentation of objects into geometric shapes.

Medievalists

Scholars who specialize in the study of the medieval period, encompassing history, literature, art, and culture of that era.