Allocating common fixed costs to segments on segmented income statements increases the usefulness of such statements.

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Laura Daria Letson · Accepted Answer

Final Answer : False, Explanation :  Allocating common fixed costs to segments does not increase the usefulness of segmented income statements because these costs are not caused by or directly attributable to any specific segment, making it difficult to accurately assess the performance of individual segments.

Allocating common fixed costs to segments on segmented income statements increases the usefulness of such statements.

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