Answer
No, a company should not allocate its common fixed expenses to business segments. These costs are not traceable to individual segments and will not be affected by segment-level decisions.
Work Step by Step
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Managerial Accounting (15th Edition)
by Garrison, Ray; Noreen, Eric, Brewer, Peter
Published by
McGraw-Hill Education
ISBN 10:
007802563X
ISBN 13:
978-0-07802-563-1
Chapter 6 - Variable Costing and Segment Reporting: Tools for Management - Questions - Page 259: 6-17
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