Segment margin is calculated as follows:
A)Revenues less flexible costs.
B)Revenues less expenses.
C)Revenues less direct costs.
D)Revenues less variable costs

Question

Quizplus · Accepted Answer

Segment margin is calculated by subtracting direct costs from revenues. Direct costs are those costs that can be directly attributed to a segment, and this calculation helps in assessing the profitability of different segments of a business.

Segment Margin Is Calculated as Follows