14. Sales less variable expenses equals contribution margin; contribution margin less direct fixed expenses equals:

A.

Gross margin

B.

Operating income

C.

Net income

D.

Segment margin

15. A _______________________ is an expense assigned to an organizational segment in a segmented income statement that would not be incurred if the segment were eliminated:

A.

Fixed expense

B.

Direct fixed expense

C.

Common fixed expense

D.

Variable expense