Segment Reporting Basics & Tools

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Which of the following costs would be considered a common fixed cost?

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1. Calculate the contribution margin given the following information: sales = $25,000; variable costs = $15,000; traceable fixed costs = $3,000; common fixed costs = $2,000.

2. Jennifer is the owner of a home décor and furnishings store and is trying to decide whether to close the kitchenware department; she should consider all of the following except

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About This Quiz & Worksheet

The quiz/worksheet combo is useful in checking your knowledge of segment reporting and why businesses use it today. You need to know how to calculate net income and contribution margin for the quiz.

Quiz & Worksheet Goals

You will be assessed over the following topics:

  • What's considered when deciding to close a department
  • Calculating the contribution margin
  • Examples of common fixed costs
  • Calculating net income

Skills Practiced

  • Information recall - access the knowledge you have gained about what a fixed cost is
  • Knowledge application - use your knowledge to answer questions about the contribution margin and net income
  • Reading comprehension - ensure that you draw the most important information from the lesson on segment reporting tools

Additional Learning

Gain additional knowledge about these tools using the lesson, Segment Reporting Basics & Tools. You have the chance to review these other topics:

  • Types of costs
  • How to calculate the contribution margin
  • Why segment income statements are made
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