Common segment costs, when contrasted with direct segment costs, are
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) incurred at one level for the benefit of two or more segments.
D) both b and c

Question

Quizplus · Accepted Answer

Common segment costs are costs that benefit multiple segments and cannot be directly traced to a specific segment. They are incurred at a higher level for the benefit of multiple segments, such as rent for a building that houses multiple departments. Therefore, common segment costs cover both options B and C.

Common Segment Costs, When Contrasted with Direct Segment Costs, Are