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 answer choices are correct.

Question

Quizplus · Accepted Answer

In order to measure a segment's performance, an income statement that highlights all the elements under the segment manager's control is needed. This means all the revenues, expenses, and costs that are directly related to the segment should be included in the income statement. This will give a clear picture of the profitability and performance of the segment, and help in making informed decisions about its future. Variable versus fixed costs and product versus period costs are important concepts to consider, but they are not sufficient on their own to measure segment performance.

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