Haribo has multiple business segments. Which is true from below?

Multiple Choice

• If a business segment is entirely eliminated, a true common fixed cost will decrease.

• Fixed costs traceable to a business segment can become common costs if the business segment is divided into smaller segments.

• Both traceable and common fixed costs should be charged to business segments.

• Traceable fixed costs are incurred to support more than one business segment and thus should not be charged to any particular segment.

• The company's segmented income statement is usually prepared in the traditional format.