Segment margin . represents the excess of revenues over direct vari- able expenses and avoidable fixed expenses
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Segment margin . represents the excess of revenues over direct vari- able expenses and avoidable fixed expenses of a specific product/service line. measures the segment's contribution to the cov- erage of indirect and unavoidable expenses. is used to decide whether a product line should be retained or eliminated; a positive segment margin indicates retention and a negative seg- ment margin indicates elimination.
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Related Book For
Cost Accounting Foundations And Evolutions
ISBN: 9780324235012
6th Edition
Authors: Michael R. Kinney, Jenice Prather-Kinsey, Cecily A. Raiborn
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