Only those costs that would disappear over time if a segment were eliminated should be considered traceable costs of the segment.

Question

Quizplus · Accepted Answer

Traceable costs are costs that can be directly and exclusively attributed to a specific segment. If a segment were eliminated, then only traceable costs would disappear along with it. Therefore, only traceable costs should be considered as costs that would disappear over time if a segment were eliminated.

Only Those Costs That Would Disappear Over Time If a Segment