What is a segment?
A)a non-controllable cost
B)an area of responsibility in decentralized operations
C)another name for a cost centre
D)a division which contains both controllable and non-controllable costs

Question

Quizplus · Accepted Answer

A segment is an area of responsibility in decentralized operations, where managers have control over both revenues and costs. It is also known as a profit center. Non-controllable costs are those that cannot be influenced by the actions of the manager and are typically allocated to the segment. Therefore, option A and D are incorrect. Option C is partially correct as a cost center is a subcategory of a segment/profit center.

What Is a Segment