To evaluate the financial performance of a segment,and not the financial performance of the segment's manager,use ________.
A) income before taxes
B) contribution by segment
C) contribution controllable by segment managers
D) contribution margin by segment

Question

Quizplus · Accepted Answer

Contribution by segment is used to evaluate the financial performance of a segment itself, excluding factors not directly related to the segment's operations such as taxes and corporate overheads, which are not controlled by the segment manager.

To Evaluate the Financial Performance of a Segment,and Not the Financial