When preparing segmented income statements,unallocated costs do NOT include ________.
A) cost of public relations department
B) salaries of top management
C) corporate level advertising
D) segment level advertising

Question

Quizplus · Accepted Answer

Unallocated costs are those that cannot be directly attributed to a particular business segment, and are typically corporate-level costs. Cost of public relations department, salaries of top management, and corporate level advertising are all examples of unallocated costs that would be included in a segmented income statement. However, segment level advertising is a cost that can be directly attributed to a specific business segment, and would not be considered an unallocated cost.

When Preparing Segmented Income Statements,unallocated Costs Do NOT Include ________