Question

REVISE A segment margin is the

a. segments contribution margin minus all fixed costs.
b. segments contribution margin minus direct fixed costs
c. segments contribution margin minus allocated fixed costs
d. same as the segment's contribution margin

Answer 1

A segment margin is the segments contribution margin minus all fixed costs.

Step-by-step explanation:

A segment margin is the segments contribution margin minus all fixed costs. This means that it represents the amount of profit that a specific segment or division of a company generates after deducting all fixed costs. The contribution margin is the revenue generated by the segment minus the variable costs.