Segmented contribution margin statements can:
A) Be utilized to present both product and region information.
B) Only be utilized to present product or region information.
C) Requires the use of high-low or regression analysis modeling for information.
D) Not be utilized by small companies with few products or services.

Question

Quizplus · Accepted Answer

Segmented contribution margin statements can be utilized to present both product and region information. This allows managers to make informed decisions regarding the profitability of specific products or regions and adjust their strategies accordingly. While high-low or regression analysis modeling can be used to refine the accuracy of the information presented, it is not a requirement for utilizing segmented contribution margin statements. Small companies with few products or services can also benefit from using segmented contribution margin statements as it allows for a better understanding of the profitability of each product or service they offer.

Segmented Contribution Margin Statements Can