Segmented contribution margin statements:
A) Require that all cost be associated with a product or region.
B) Cannot be utilized to determine sales value per unit or costs per unit.
C) Can present common fixed costs.
D) Cannot be utilized in the decision process of special pricing.

Question

Quizplus · Accepted Answer

Segmented contribution margin statements can present common fixed costs, which allows for a better understanding of the profitability of a specific product or region. However, they also require that all costs be associated with a product or region, and can still be utilized in the decision process of special pricing as long as the common fixed costs are included. Additionally, they can still determine sales value per unit and costs per unit as long as the costs are properly allocated.

Segmented Contribution Margin Statements