11. The salary paid to a store manager is a traceable
fixed expense of the store.
12. Segmented statements for internal use should be
prepared in the contribution format.
13. Fixed costs that are traceable to a segment may
become common if the segment is divided into smaller units.
14. The contribution margin is viewed as a better
gauge of the long run profitability of a segment than the segment margin.
15. In responsibility accounting, each segment in an
organization should be charged with the costs for which it is responsible and
over which it has control plus its share of common organizational costs.
16. The contribution margin tells us what happens to
profits as volume changes if a segment’s capacity and fixed costs change as
17. Only those costs that would disappear over time if
a segment were eliminated should be considered traceable costs of the segment.
18. In segment reporting, sales dollars is usually an
appropriate allocation base for selling, general, and administrative
19. A segment is any portion or activity of an
organization about which a manager seeks revenue, cost, or profit data.