The Segment Margin Income Statement Excludes

question 60

Multiple Choice

The segment margin income statement excludes

• A)all allocated costs in the calculation of the segment margin.
• B)all fixed costs.
• C)all period costs.
• D)non-cash expenses.

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Definitions:

APC

The average propensity to consume, which is the fraction of total income that is spent on consumption as opposed to being saved.

Saving

The portion of income not spent on consumption, often set aside for future investments or expenditures.

Disposable Income

The amount of money individuals or households have available to spend or save after taxes have been accounted for.

Saving

The portion of income that is not spent on consumption but instead is set aside for future use or investment.