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If a cost is a common fixed cost on a segmented income statement, the cost should: 1) Be allocated to the segments on the basis

If a cost is a common fixed cost on a segmented income statement, the cost should:

1)

Be allocated to the segments on the basis of segment sales.

2)

Not be allocated to the segments.

3)

Excluded from the income statement.

4)

Treated as a product cost rather than a period cost.

Which of the following capital budget screening methods does not consider the time value of money?

1)

The Net Present Value.

2)

The Payback Period.

3)

The Profitability Index.

4)

The Internal Rate of Return.

5)

None of the above; all listed methods are considered

If a segments variable cost per unit decreases but traceable fixed costs remain the same, then:

1)

Total sales will increase.

2)

Total contribution margin will decrease.

3)

Total segment margin will increase.

4)

The company overall net operating income will decrease due to the change in the variable cost per unit.

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