The Difference Between the Profit Margin Controllable by a Segment

question 59

Multiple Choice

The difference between the profit margin controllable by a segment manager and the segment profit margin is caused by:

• A) variable operating expenses.
• B) allocated common expenses.
• C) fixed expenses controllable by the segment manager.
• D) fixed expenses traceable to the segment but controllable by others.
• E) sales revenue.

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Definitions:

Salary

Compensation received by an employee, usually as periodic payments, for performing their job responsibilities.

Bonuses

Additional compensation given to employees as an incentive or reward for their performance and contribution to the organization.

Incentive Plans

Programs designed to motivate and reward employees for achieving specific performance targets or business goals.

Demotivator

An aspect or condition that reduces motivation or enthusiasm.