The difference between the proﬁt margin controllable by a segment manager and the segment proﬁt margin is caused by:
A)variable operating expenses.
B)allocated common expenses.
C)ﬁxed expenses controllable by the segment manager.
D)ﬁxed expenses traceable to the segment but controllable by others.
E)sales revenue.

Question

Quizplus · Accepted Answer

The difference arises from fixed expenses that are traceable to the segment but are controlled by others, not the segment manager.

The Difference Between the Proﬁt Margin Controllable by a Segment