When evaluating profitability of a segment,costs that would disappear if the company eliminated the segment are called:
A)Direct costs.
B)Common costs.
C)Indirect costs.
D)Fixed costs.

Question

Quizplus · Accepted Answer

Direct costs are specifically associated with a particular segment and would disappear if the segment were eliminated. These costs are directly attributable to the segment, making them relevant for evaluating its profitability.

When Evaluating Profitability of a Segment,costs That Would Disappear If