Segment contribution margin less ________ describes the segment contribution that is controllable by segment managers.
A)fixed costs controllable by segment managers
B)fixed costs not controlled by segment managers
C)unallocated costs
D)uncontrollable costs

Question

Quizplus · Accepted Answer

Segment contribution margin less fixed costs that are controllable by segment managers represents the amount of contribution margin that can be controlled by the segment manager. Fixed costs that are controllable by segment managers include costs such as labor, materials, and supplies that are directly related to the segment's operations and can be managed by the segment manager. Therefore, option A is correct. The other options (B, C, D) represent costs that are either not controllable by the segment manager or do not directly relate to the segment's operations.

Segment Contribution Margin Less ________ Describes the Segment Contribution That