What is really needed to measure a segment's performance is an income statement that highlights
A)Variable versus fixed costs.
B)Product versus period costs.
C)All the elements under the segment manager's control.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

To measure a segment's performance accurately, an income statement must highlight all the elements under the control of the segment manager. This includes both revenue and expenses, such as salaries, raw materials costs, advertising expenses, and so forth. Only by examining all of these factors together can a manager truly assess the success or failure of a particular segment. The other options, such as variable versus fixed costs and product versus period costs, are important considerations but do not provide a comprehensive picture of the segment's performance.

What Is Really Needed to Measure a Segment's Performance Is