Multiple Choice
Many companies view performance margin as a more useful tool than responsibility margin for evaluating segment managers.This is because:
A) Managers have no control over traceable fixed costs.
B) Performance margin is not affected by the size of the department.
C) Performance margin indicates the change in operating income that would result from closing the department.
D) Performance margin includes only those revenue and costs under the manager's direct control.
Correct Answer:
Verified
Correct Answer:
Verified
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