Segment sales revenue minus which of the following sets of costs is equal to segment margin?
A)variable cost of goods sold, variable selling expense, and direct fixed costs
B)variable selling expense, variable cost of goods sold, and common fixed costs
C)variable cost of goods sold, total selling expense, and direct fixed costs
D)variable selling expense, administrative expense, variable cost of goods sold, and direct fixed costs

Question

Quizplus · Accepted Answer

Segment margin is calculated by subtracting variable costs (both cost of goods sold and selling expenses) and direct fixed costs from segment sales revenue. Common fixed costs are not subtracted because they are not directly attributable to the segment.

Segment Sales Revenue Minus Which of the Following Sets of Costs