Solved

Is Segment Margin an Appropriate Measure of Financial Performance for Segment

Question 63

Essay

Is segment margin an appropriate measure of financial performance for segment management? Why?
Yes,it is an appropriate measure because all of the revenues and costs used to compute segment margin are directly traceable to the segment and are essentially under the control of the segment manager.Segment income is also a valuable measure of performance because it considers all costs that could be avoided without the segment.

Correct Answer:

verifed

Verified

Yes, it is an appropriate measure becaus...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions