Is Segment Margin an Appropriate Measure of Financial Performance for Segment

question 63

Essay

Is segment margin an appropriate measure of financial performance for segment management? Why?
Yes,it is an appropriate measure because all of the revenues and costs used to compute segment margin are directly traceable to the segment and are essentially under the control of the segment manager.Segment income is also a valuable measure of performance because it considers all costs that could be avoided without the segment.

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Definitions:

Peripheral Nerves

Peripheral nerves are the nerves outside of the brain and spinal cord that transmit sensory and motor information to and from the rest of the body.

CNS

The Central Nervous System (CNS) consists of the brain and spinal cord, responsible for processing information and controlling responses.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brainstem down the back, and transmits neural signals between the brain and the rest of the body.

Attentiveness

The state or quality of being attentively listening or watching; paying close attention to details.