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ACCT4 Chp 6
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A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.
Variable costing
A fixed cost that is incurred because of the existence of a particular business segment and that would be eliminated if the segment were eliminated.
Traceable fixed cost
A segment’s contribution margin less its traceable fixed costs. It represents the margin available after a segment has covered all of its own traceable costs.
Segment margin
Any part or activity of an organization about which managers seek cost, revenue, or profit data.
Segment
A fixed cost that supports more than one business segment, but is not traceable in whole or in part to any one of the business segments.
Common fixed cost
A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in unit product costs.
Absorption costing


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