Which of the following is subtracted from contribution margin to obtain segment margin?
A)Common fixed costs
B)Direct fixed costs
C)Variable costs
D)All of these choices

Question

Quizplus · Accepted Answer

Segment margin is calculated by subtracting direct fixed costs from the contribution margin. Common fixed costs are not allocated to segments for this calculation, and variable costs are subtracted earlier to find the contribution margin itself.

Which of the Following Is Subtracted from Contribution Margin to Obtain