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What is post hoc segmentation?
Variable Costing
A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold, excluding fixed overhead.
Operating Income
The profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.
Segment Margin
The amount of profit or loss generated by a particular segment of a business after accounting for the direct and indirect costs associated with that segment.
Segmented Income Statement
An income statement that breaks down revenue, expenses, and profit by individual segments of the business.
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