Question

a b. c. When using internal rate of return, the cost of capital acts as a Capital cost rate b. Hurdle rate Star rate d. Super
Common costs should a. Always be allocated to segments Not be allocated to segments b. c. Be allocated at the discretion of t
Ways to increase Return on Investments include all except a. Increasing Sales b. Decreasing Operating Expenses c. Increasing
Segment Margin is obtained by deducting a. Traceable variable costs from its contribution ratio b. Traceable fixed costs from

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Answer #1

When using internal rate of return,the cost of capital acts as Hurdle Rate.

Common Cost should not be allocated to the segments.

Ways to increase Return on Investement include all except increasing liabilities.

Segment Margin is obtained by deducting Traceable fixed cost from its contribution margin.

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