Question
Which of the following statements is true concerning cost assignment for segmental reporting: Check All That Apply A) A manufacturing company can properly assign its
Which of the following statements is true concerning cost assignment for segmental reporting:
Check All That Apply
A) A manufacturing company can properly assign its costs to different product segments by relying on financial reporting statements of profit or loss. A manufacturing company can properly assign its costs to different product segments by relying on financial reporting statements of profit or loss.
B) Where appropriate, the use of cause and effect cost drivers to assign shared facility costs to business segments enhances segmental reporting. Where appropriate, the use of cause and effect cost drivers to assign shared facility costs to business segments enhances segmental reporting.
C) Allocating head office property rental and utility costs on the basis of relative divisional revenue will improve divisional reporting. Allocating head office property rental and utility costs on the basis of relative divisional revenue will improve divisional reporting.
D)Divisional property rentals, although paid for by head office, should be traced to divisions to assess their long-term viability.
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