A common cost that should not be assigned to a particular product on a segmented income statement is:
A)the product's advertising costs.
B)the salary of the corporation president.
C)direct materials costs.
D)the product manager's salary.

Question

Quizplus · Accepted Answer

The salary of the corporation president is a general administrative cost and should not be allocated to a particular product. Direct materials costs, product advertising costs, and product manager's salary are all costs that are specifically associated with producing and promoting a particular product and should be allocated to that product on a segmented income statement.

A Common Cost That Should Not Be Assigned to a Particular