The contribution margin of a particular segment less any direct fixed costs is called
A)Segment margin
B)Segment profit
C)Segment operating margin
D)None of these ans choices are correct

Question

Quizplus · Accepted Answer

The definition provided in the question is that of a segment margin. Therefore, the correct choice is A (Segment margin). Choice B (Segment profit) is similar to segment margin but does not take into account any direct fixed costs. Choice C (Segment operating margin) is not the correct term because operating margin includes both variable and fixed costs, not just direct fixed costs. Choice D (None of these ans choices are correct) is not true since A (Segment margin) is the correct choice.

The Contribution Margin of a Particular Segment Less Any Direct