What are FedEx's four main business segments? Provide two examples of traceable fixed costs for each of FedEx's four business segments. Provide two examples of common costs that are not traceable to the four business segments.
Fed Ex has four main business segments. They are FedEx Express, FedEx Ground, FedEx Freight, and FedEx Kinko's. A fixed cost that is traceable in a segment only exists because of the existence of the segment itself (Noreen, Brewer, & Garrison, 2008). If the segment is removed then so is the cost. Common costs are incurred to support operations of multiple segments of a company and are not traceable in any way or part of a particular segment (Noreen, Brewer, & Garrison, 2008). If a segment is removed then the cost remains and doesn't change.
A traceable fixed cost for FedEx Express is the cost of their facilities at Memphis International Airport, which includes hangars, aircraft maintenance, flight training, fuel facilities, administration building, and warehouse space. FedEx Express also has traceable costs in maintaining the 557 airplanes they own. They also have costs related to operating their offices and information data centers that are located in Pittsburgh and owned by FedEx Ground. Costs are also related to the salaries of the CEO plus all the worker's salaries. Traceable costs also include the costs to maintain the 39,500 vehicles and trailers plus the cost of operating their customs-critical headquarters in Green, Ohio. FedEx Kinko's traceable costs include operating 1,290 Office and Print Centers as well as the salary