A segment contribution margin would reﬂect the impact of:
A)variable operating expenses.
B)ﬁxed expenses controllable by the segment manager.
C)ﬁxed expenses traceable to the segment but controllable by others.
D)common ﬁxed expenses.
E)All answers except common ﬁxed expenses are correct.

Question

Quizplus · Accepted Answer

A segment contribution margin reflects the impact of variable operating expenses, which are expenses that vary in proportion to changes in activity levels. This means that the contribution margin will only reflect the costs that are directly associated with producing and selling products or services, and not any fixed costs that are not directly related to the segment's operations. Therefore, options B, C, and D are incorrect.

A Segment Contribution Margin Would Reﬂect the Impact Of