All other things being equal,if a division's traceable fixed expenses increase:
A)the division's contribution margin ratio will decrease.
B)the division's segment margin ratio will remain the same.
C)the division's segment margin will decrease.
D)the overall company profit will remain the same.

Question

Quizplus · Accepted Answer

Traceable fixed expenses are expenses that can be directly traced to a particular division or segment. If these expenses increase, it will directly decrease the segment margin of that division. The contribution margin ratio and overall company profits may or may not be affected depending on other factors.

All Other Things Being Equal,if a Division's Traceable Fixed Expenses