A Segment of an Organization Is Any Part of the Organization

question 184

Essay

A segment of an organization is any part of the organization that management wishes to evaluate.Segment margin income statements highlight the elements under the segment manager's control.
Required:
a.What is "segment margin" and how is it calculated?
b.What is the difference between "segment margin" and a segment's "net operating income?"
c.Why are common allocated fixed costs an issue in evaluating the performance of a segment manager?

---

Definitions:

Phenylketonuria

A genetic disorder resulting in an inability to metabolize the amino acid phenylalanine, requiring a strict diet to prevent intellectual disability and other health problems.

PKU

Phenylketonuria, a rare inherited disorder that increases the levels of a substance called phenylalanine in the blood, requiring dietary management.

Normalization Principle

A principle advocating that people with disabilities should have living conditions akin to those of the rest of society.

FASD

Fetal Alcohol Spectrum Disorders; a group of conditions that can occur in a person whose mother drank alcohol during pregnancy.