Question: Common fixed costs that are allocated to segments can make a product line appear to be unprofitable are incremental costs are used to calculate the

Common fixed costs that are allocated to segments can make a

Common fixed costs that are allocated to segments can make a product line appear to be unprofitable are incremental costs are used to calculate the segment margin are relevant in decisions involving dropping a product line A company that is operating at full capacity faces a decision about accepting a special offer for one of its products. A cost that is most likely not relevant to this decision is direct materials variable overhead fixed manufacturing overhead costs contribution margin earned on normal sales

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

One model A1100 Kawasaki Jet Ski Personal Watercraft was sold for cash. This model retails for $9,375.00 plus 8% sales tax ($9,375.00 x 8% = $750.00). Invoice Number: G4011. Because a perpetual...

Which of the following is not an assumption made in cost-volume-profit analysis? OOOOO Costs can be divided into mixed and variable costs. Inventory quantities are the same at the beginning and end...

3. value. 3.00 points Which of the following statements is true? There may be more than one answer Possible answers: 1 A segment's contribution margin minus its traceable fixed expenses equals the...

A segment's contribution margin minus its traceable fixed expenses equals the segment margin. Allocating a portion of common fixed costs to a segments real costs may make an otherwise profitable...

Which of the following statements is true? There may be more than one answer: Possible answers: A segment's contribution margin minus its traceable fixed expenses equals the segment margin....

Choose the correct answer for each of the following FOUR subjective questions/statements (numbered 7 through 10). 7. The costs of carrying inventory include all of the following except: a)Ordering...

hello please help answer the attached ASAP. within 45 minutes Question: A proposed project will cost $600,000 and will provide returns of $150,000 in Year 1, $300,000 in Year 2, and $500,000 in Year...

VOCAB! HELP If incremental revenue from processing exceeds the extra cost of processing further If the fixed costs savings exceed the contribution margin lost from a product line or department Their...

22. When deciding between two alternatives, the preferred alternative always has A. no opportunity costs. B. greater revenues than the other alternatives. C. less expense than the other alternatives....

The complete combustion of acetylene [C2H2(g)] produces 1300. kJ of energy per mole of acetylene consumed. How many grams of acetylene must be burned to produce enough heat to raise the temperature...

From the Trial Balance of R.R.R. Ltd as on 31st March 2020 prepare Final accounts. Particulars... Capital Drawings Stock (1.1.2019) Purchases Sales Sales Returns Wages Insurance Premium Packing...

In 2 0 2 3 , fenry had a $ 1 2 . 0 0 0 net short - term capital loss and deducted $ 3 , 0 0 0 as a caphal loss deduction. in 2 0 2 4 , jenny has a $ 1 8 , 0 0 0 owiswizow lone - term capital gain and...

Refer to the external source details below and discuss the specialized airfreight cargo trade of fresh flowers from Colombia to the US .

4. What are the advantages and disadvantages of the Boomerang Water Corporation buying an offthe shelf integrated HR database system? Jack Newman had recently been appointed regional direc-tor of...

4.1 Explain multiple uses of job analysis in HR decisions.

3. What internal factors are required to enable organiz ational adaption to technological changes?