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

Question

Quizplus · Accepted Answer

Common costs are costs that cannot be directly linked to a specific business segment. These costs are often shared by different departments or segments of a business and cannot be easily allocated to one specific segment. Sunk costs are costs that have already been incurred and cannot be recovered, while fixed costs are costs that do not change regardless of changes in sales volume or production. Incremental costs are costs that result from an increase in production or sales.

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