14 IF THE SELLING DIVISION HAS IDLE CAPACITY, COSTS THAT ARE TRACEA...

12-14 If the selling division has idle capacity,

costs that are traceable to a segment may be-

any transfer price above the variable cost of

come common as that segment is divided into

producing an item for transfer will generate

smaller segment units. For example, the costs of

some additional profit.

national TV and print advertising might be

traceable to a product line, but be a common