What are common segment costs when contrasted with direct segment costs?
A)costs of all segments such as direct labour
B)costs related to more than one segment and not directly traceable to a particular segment
C)costs incurred at one level for the benefit of one segment
D)costs incurred by all segments and are directly traceable to all segments

Question

Quizplus · Accepted Answer

Common segment costs refer to those costs which cannot be directly traced to a specific segment, but are related to more than one segment. Examples include costs related to corporate headquarters, shared services, and information technology. On the other hand, direct segment costs are incurred at one level for the benefit of one segment and can be easily traced to that segment. Examples include direct materials, direct labour, and direct expenses. Therefore, option B is the correct choice.

What Are Common Segment Costs When Contrasted with Direct Segment