Why is determining the profit of a segment harder than the company as a whole?
A)Because of the need to allocate the assets
B)Because of the need to allocate the contribution margin
C)Because of the need to allocate revenues
D)Because of the need to allocate expenses

Question

Quizplus · Accepted Answer

Determining the profit of a segment is harder than the company as a whole because of the need to allocate expenses. In order to accurately determine the profit of a segment, expenses such as salaries, rent, utilities, etc. need to be allocated specifically to that segment, which can be a more complex process than determining overall company expenses.

Why Is Determining the Profit of a Segment Harder Than