A National Retail Company Has Segmented Its Income Statement by Sales

Multiple Choice

A national retail company has segmented its income statement by sales territories. If each sales territory statement is further segmented by individual stores, which of the following will most likely occur?

A) some common fixed expenses in the sales territory segmented statement will become traceable fixed expenses in the individual store segmented statement.
B) some traceable fixed expenses in the sales territory segmented statement will become common fixed expenses in the individual store segmented statement.
C) the sum total of the individual stores' segment margins in each sales territory will be equal to the segment margin for the sales territory.
D) the sum total of the sales territory segment margins will equal the total net operating income for the entire company.