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5. All other things being equal, if a division's traceable fixed expenses increase A. the division's contribution margin ratio will decrease B. the division's segment margin ratio will remain the same. C. the division's segment margin will decrease. D. the overall company profit will remain the same 6. Segment marginis sales minus A. variable expenses. B. traceable fixed expenses. C. variable expenses and common fixed expenses. D. variable expenses and traceable fixed expenses. 7. When absorption costing is used fluctuation in net operating income can be caused by changes in inventory as well as sales. TRUE FALSE 8. Contribution margin and segment margin mean the same thing TRUE FALSE 9. Under variable costing, fixed manufacturing overhead cost is treated as a product cost. TRUE FALSE 10. The salary of the treasurer of a corporation is an example of a common cost which normally cannot be traced to product segments. TRUE FALSE 11. The salary paid to a store manager is a traceable fixed expense of the store. TRUE FALSE 12. Segmented statements for internal use should be prepared in the contribution margin formal TRUE FALSE 13. Fixed costs that are traceable to a segment may become common if the segment is divided into smaller units TRUE FALSE .. ........One more page.......... .....One more page... 14. The contribution margin is viewed as a better gauge of the long run profitability of a segment than the segment margin. TRUE FALSE