In the analysis of segment profitability,which of the following financial statements is prepared?
A)Segmented balance sheet
B)Segmented statement of cash flows
C)Segmented income statement using variable costing
D)Segmented single-step income statement

Question

Quizplus · Accepted Answer

The segmented income statement using variable costing would be the most appropriate financial statement to prepare for analyzing segment profitability as it separates fixed and variable costs and shows the contribution margins of each segment. The segmented balance sheet and segmented statement of cash flows are not relevant for this analysis. The segmented single-step income statement does not separate fixed and variable costs and may not provide sufficient insight into segment profitability.

In the Analysis of Segment Profitability,which of the Following Financial