Common fixed expenses are avoidable if a segment is eliminated.

Name: Common fixed expenses are avoidable if a segment is eliminated.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Common fixed expenses cannot be avoided or eliminated by simply eliminating a segment. Common fixed expenses are expenses that are incurred regardless of the presence or absence of a particular segment or product line. They are fixed costs that are allocated across all segments or products based on some predetermined allocation method.

Common Fixed Expenses Are Avoidable If a Segment Is Eliminated