The financial performance of a segment manager is evaluated by ________.
A) contribution margin of segment
B) contribution margin of segment less fixed costs controllable by others
C) contribution margin of segment less fixed costs controllable by segment manager
D) contribution by segment

Question

Quizplus · Accepted Answer

The financial performance of a segment manager is evaluated by the contribution margin of the segment less fixed costs controllable by the segment manager. This method ensures that the segment manager is only accountable for the costs that they can control and gives them an accurate understanding of their impact on the segment's profitability.

The Financial Performance of a Segment Manager Is Evaluated by ________