When preparing segment income statements, unallocated costs _____.
A)are controllable costs
B)might include central corporate costs
C)are uncontrollable costs or sunk costs
D)do not exist

Question

Quizplus · Accepted Answer

Unallocated costs might include central corporate costs, which are necessary to run the company but cannot be attributed to a specific business segment. These costs are not controllable by individual segments and must be included in the overall income statement.

When Preparing Segment Income Statements, Unallocated Costs _____