A common cost that should not be assigned to a particular product on a segmented income statement is:
A. the product's advertising costs.
B. the salary of the corporation president.
C. direct materials costs.
D. the product manager's salary.

Respuesta :

Answer:

The correct answer to the following question is option B) the salary of the corporation president.

Explanation:

In the given question , all the options except option (B) , would be assigned to a particular product , while segmenting on a income statement. A product advertising cost which a company incurred while promoting the product, the direct material cost which a company while in the production of project and a production managers salary would also be included in the product cost. A corporations president who is in the higher level of management in the company, is responsible for making decisions regarding company's vision , strategy development , public relations etc , his or her salary would not be included in product cost.