Common segment costs, when contrasted with direct segment costs, are
A) costs of all segments such as direct labor.
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 two or more segments, but are not directly traceable to any specific segment. They are incurred at one level for the benefit of multiple segments. Therefore, common segment costs are a combination of both costs related to more than one segment and indirect costs.

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