00:01
Hello students, let us solve the problem.
00:02
Here we have three questions to solve.
00:06
So all three are multiple choice.
00:08
We have options here.
00:09
We have to choose the right options from this.
00:12
So when it comes to the first question in evaluating profitability of a specific organizational segment all dash should be ignored.
00:20
So this is our question.
00:21
We have four options given here option a is cost allocated to the segment option b is segment fixed cost option c is segment variable cost and option d is period cost.
00:34
So our right answer is option d period cost.
00:39
So in evaluating the profitability of a specific organizational segment all period cost would be ignored.
00:47
So period cost are not directly related to a production or operation of a specific segment.
00:53
So they would not be considered in evaluating the profitability when it comes to the second question a service department provide a specific functional task for other internal units, which of the following activity would be engaged in the service department...