Segment margin is equal to segment sales revenue minus
A) variable cost of goods sold, variable selling expense, and direct fixed costs.
B) variable cost of goods sold, variable selling expense, and common fixed costs.
C) variable cost of goods sold, total selling expense, and direct fixed costs.
D) variable cost of goods sold, variable selling expense, administrative expense, and direct fixed costs.
E) cost of goods sold, variable selling expense, and fixed factory overhead.

Question

Quizplus · Accepted Answer

Segment margin is calculated by subtracting variable costs (including variable cost of goods sold and variable selling expenses) and direct fixed costs from segment sales revenue. This calculation does not include common fixed costs, which are not directly attributable to the segment.

Segment Margin Is Equal to Segment Sales Revenue Minus