The contribution controllable by segment managers is used to evaluate the performance of segment managers.

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The contribution controllable by segment managers is a key factor in evaluating their performance, as it reflects the effectiveness of their decisions and actions in driving the profitability of their respective segments. This contribution typically includes revenues, expenses, and capital expenditures that are directly under the control of the segment manager. By assessing the contribution of each manager, the company can identify areas of strength and weakness, and make necessary adjustments to improve overall performance.

The Contribution Controllable by Segment Managers Is Used to Evaluate