Question

A company has two divisions, each selling several products. If segment reports are prepared for each product, the division managers' salaries should be considered as traceable fixed costs of the products.a.trueb.false

Answer 1

Answer:

True

Explanation:

The salaries of division managers are required to be treated as fixed costs when there are multiple departments in the same company.

For each department, different division managers are appointed whose salaries are predetermined for their department. In such a situation, the salary received by the division managers is a fixed cost for the business.

So, the statement given is true.