Which of the following statements concerning performance evaluation tools used in decentralized operations is correct?

A. A segments return on investment can be calculated by multiplying the segments sales margin percentage by its capital turnover ratio.

B. Segment margin is calculating by subtracting the common fixed costs allocated to a segment from the segments contribution margin.

C. A positive residual income indicates that a segments return on investment is less than the companys target rate of return.

D. Performance reports can only be used to evaluate the performance of cost centers.

E. Segmented income statements are also referred to as budget versus actual reports.