In a segment income statement, which of the following statements is true? a. the segment margin is greater than the contribution margin. B Common fixed charges must be assigned to each segment. vs. the contribution margin is equal to sales less all direct variable and fixed expenses of a segment. D. the segment margin is equal to the contribution margin minus direct and common fixed expenses. and. Segment Margin equals Contribution Margin minus Direct Fixed Expenses.
Answer 1
e. Segment Margin equals Contribution Margin minus Direct Fixed Expenses. Explanation: The profit contribution that each segment makes to cover the common fixed costs of a business is called segment margins and is used to measure the change in profit of a business which, in turn, would occur if the segment were eliminated. represented mathematically by: segment margin = contribution margin – direct fixed expenses
answer 2
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answer 3
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