West Coast Electronics (WCE) operates 87 stores and has three divisions: California, Oregon, and Washington. Which of the following costs would not appear on Oregon's portion of WCE's segmented income statement?
A) Costs related to statewide advertising contracts, negotiated by Oregon's divisional manager.
B) Variable sales commissions paid to Oregon's salespeople.
C) Compensation paid to Oregon's chief operating officer, as determined by WCE's management.
D) Oregon's allocated share of general WCE corporate overhead.
E) Compensation paid to Oregon's chief operating officer, as determined by WCE's management and Oregon's allocated share of general WCE corporate overhead.

Question

Quizplus · Accepted Answer

General corporate overhead is typically not allocated to individual segments or divisions in a segmented income statement, as it is considered a corporate-level cost.

West Coast Electronics (WCE) Operates 87 Stores and Has Three