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After viewing the video below respond to the following questions: What are "common" fixed costs not...

After viewing the video below respond to the following questions: What are "common" fixed costs not allocated to segments? Can you think of any segments that have been eliminated from companies that you are familiar with (products, etc.). I was shopping for a small truck recently and noticed that Mazda had eliminated economy trucks from their product line. Their small truck product line must have had a negative 'segment margin".

http://youtu.be/XYsmT8A-e08 (Links to an external site.)Links to an external site.

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Answer #1

Looking at the video, I have come across following conclusions regarding your queries:

1. Common fixed cost in such a business could be:

a. Interenet Services

b. Interest Cost

c. Electicity Cost

d. Rent for the premises

e. Maintanence of Website

f. Marketing Efforts

g. Workers such as finance department

2. I dont think that the company has missed out any segment in the reporting because they have included both basic and custom web page segment in the reporting even though the custom webpage segment is in loss. So the company has given true and fair reporting as far as I am concerned.

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