Niesen Corporation Has Two Major Business Segments-Consumer and Commercial

question 14

Multiple Choice

Niesen Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for August appear below: In addition, common fixed expenses totaled $282,000 and were allocated as follows: $127,000 to the Consumer business segment and $155,000 to the Commercial business segment.
-A properly constructed segmented income statement in a contribution format would show that the segment margin of the Consumer business segment is:

• A) $273,000
• B) $290,000
• C) $169,000
• D) $296,000

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Definitions:

Fringe Benefits

Additional benefits, beyond a wage or salary, provided by an employer to their employees, such as health insurance, paid vacation, and retirement plans.

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Positions involved in the creation of products from raw materials or components, using various processes, tools, and machinery.

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A decision-making process where major decisions are made by a small group of people or a single individual at the top of the organizational hierarchy.

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A business efficiency technique combining the timing of work tasks with a study of the motions required to perform them, used to increase productivity.