Managers will often allocate common fixed expenses to business segments because:
A)this is required by law.
B)not allocating these costs will lead to bad decisions.
C)they believe this practice will ensure that the company's common fixed expenses are covered.
D)they do not want the sum of the business segment margins to equal the net operating income for the company.

Question

Quizplus · Accepted Answer

Managers allocate common fixed expenses to ensure that each segment contributes to covering these expenses, aiming for overall profitability.

Managers Will Often Allocate Common Fixed Expenses to Business Segments