Costs that are not directly traceable to a segment of a business are called
A) sunk costs.
B) common costs.
C) fixed costs.
D) incremental costs.

Question

Quizplus · Accepted Answer

Common costs are costs that cannot be directly traced to a specific segment of a business and are shared among multiple segments. Sunk costs refer to costs that have already been incurred and cannot be recovered. Fixed costs refer to costs that do not vary with changes in production or sales. Incremental costs refer to the additional costs incurred by producing one more unit or engaging in one more activity.

Costs That Are Not Directly Traceable to a Segment of a Business