The contribution margin is viewed as a better gauge of the long run profitability of a segment than the segment margin.

Name: The contribution margin is viewed as a better gauge of the long run profitability of a segment than the segment margin.
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The segment margin is a better gauge of long-term profitability as it accounts for both variable and fixed costs directly attributable to the segment, whereas the contribution margin only considers variable costs.

The Contribution Margin Is Viewed as a Better Gauge of the Long