Final answer:
The false statement about segment margin is: A. Segment margin is the result of subtracting variable expenses from the contribution margin. The correct method involves subtracting direct fixed costs of the segment from the contribution margin.
Step-by-step explanation:
The statement about segment margin that is not true is: A. Segment margin is the result of subtracting variable expenses from the contribution margin. In reality, segment margin is calculated by subtracting the direct fixed costs attributable to a particular segment from its contribution margin, not just variable expenses. The segment margin reflects how much profit is generated by a particular business segment after accounting for the direct costs associated with it, both variable and fixed, but not including common fixed costs that are not attributable to the segment.Segment margin is indeed a measure of profitability for a specific business segment, which is true as noted in option B. It is used to assess the financial performance of individual business segments as indicated in option D. It should also be noted that segment margin includes fixed costs that are directly attributable to the segment in addition to variable costs, as opposed to the claim in option C that it includes both fixed and variable costs without specifying that the fixed costs must be directly related to the segment.