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hello and welcome to this session this is professor forhat in which we would look at segmented income statement and specifically were going to be dealing with traceable fixed cost and common fixed cost im pretty sure that if you studied financial reporting you might you might have heard about segmented reporting yes segmented reporting is for financial reporting and if you did study this we discuss the three 10 percent test plus the 75 test thats for financial reporting this section is about managerial reporting perspective so were going to look at the segmented income statement from it from a managerial perspective some prerequisite knowledge is what is fixed cost what is variable cost fixed cost is a cost that does not change with production it stays the same within a variable range within the relevant range variable cost is a cost that changes with production or sales it varies now the assumption is you know what fixed cost is you know what variable cost is in this session were
