Question: Incorrectly or arbitrarily assigning common costs to segments: holds managers responsible for costs they cannot control. could reduce the overall profits of the company. ensures
Incorrectly or arbitrarily assigning common costs to segments:
holds managers responsible for costs they cannot control.
could reduce the overall profits of the company.
ensures all common costs will be covered.
causes company net income to be reported incorrectly.
distorts the profitability of segments.
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