Asked by Wajahat Jabbar on May 09, 2024

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When computing the break even for a segment, the calculations include the company's common fixed expenses.

Break Even

The point at which total revenues equal total costs, resulting in neither profit nor loss.

Common Fixed Expenses

Common fixed expenses are costs that remain constant for a given period regardless of the level of production or sales, and are shared among multiple product lines or departments within a company.

  • Understand the concept of segmented income statements and the calculation of segment break-even points.
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SM
Scott MccolaughMay 15, 2024
Final Answer :
False
Explanation :
Break-even analysis for a segment typically includes only the fixed costs directly attributable to that segment, not the company's common fixed expenses which are not allocated to specific segments.