Which of the following is the operating income an investment center generates before subtracting common fixed costs that are allocated to the center?
A)Sales volume variance
B)Segment margin
C)Return on investment (ROI)
D)Return on assets (ROA)

Question

Quizplus · Accepted Answer

Segment margin is the operating income an investment center generates before subtracting common fixed costs that are allocated to the center. Sales volume variance measures the effect of the actual sales volume differing from the expected sales volume on profit. ROI and ROA are profitability ratios that measure the return on investment and return on assets, respectively.

Which of the Following Is the Operating Income an Investment