The Segment Margin Is the Contribution Margin of a Particular

question 35

True/False

The segment margin is the contribution margin of a particular segment.The segment margin is sales revenue less all costs that are directly attributable to the segment,including variable costs and direct fixed costs.

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Definitions:

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity.

Permanent/Temporary

Describes assets, accounts, or differences; where permanent refers to lasting or intended to last indefinitely, and temporary indicates a limited time duration.

Financial Statement

Documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Direct Labor

Direct Labor consists of the wages or salaries paid to employees directly involved in the production of goods or services, representing a variable cost.