14 Mar 11. The salary paid to a store manager is a tracea
11. The salary paid to a store manager is a traceable fixed expense of the store. True False12. Segmented statements for internal use should be prepared in the contribution format. True False13. Fixed costs that are traceable to a segment may become common if the segment is divided into smaller units. True False14. The contribution margin is viewed as a better gauge of the long run profitability of a segment than the segment margin. True False15. In responsibility accounting, each segment in an organization should be charged with the costs for which it is responsible and over which it has control plus its share of common organizational costs. True False16. The contribution margin tells us what happens to profits as volume changes if a segment’s capacity and fixed costs change as well. True False17. Only those costs that would disappear over time if a segment were eliminated should be considered traceable costs of the segment. True False18. In segment reporting, sales dollars is usually an appropriate allocation base for selling, general, and administrative expenses. True False19. A segment is any portion or activity of an organization about which a manager seeks revenue, cost, or profit data. True False
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