Asked by Sophony Henri on Jul 06, 2024
Verified
Segment margin is sales less variable expenses less traceable fixed expenses.
Segment Margin
The amount of profit or loss generated by a particular segment of a business, after accounting for traceable costs and expenses.
Traceable Fixed Expenses
Fixed costs that can be directly tied to a specific segment, department, or product, and would disappear if the segment, department, or product were eliminated.
- Understand the concept of segment margin and its calculation.
Verified Answer
AT
Andrea TovarJul 13, 2024
Final Answer :
True
Explanation :
This formula for segment margin is correct.
Learning Objectives
- Understand the concept of segment margin and its calculation.