Q:) Chewbacca company has multiple business segments. Which of the following statements is false?

Multiple Choice

• Both traceable and common fixed costs should be charged to business segments to provide a complete information on the segment's performance.
• The company's segmented income statement is usually prepared in the contribution format.
• If a business segment is entirely eliminated, a true common fixed cost will not decrease.
• Traceable fixed costs are incurred to support only one business segment and thus should be charged to a particular segment.
• When a business segment is divided into smaller segments, fixed costs traceable to the business segment can become common costs.