A Segment Margin Income Statement Excludes All ________ Costs in the Calculation

question 88

Multiple Choice

A segment margin income statement excludes all ________ costs in the calculation of the segment margin.

• A)Selling
• B)Traceable
• C)Fixed
• D)Allocated

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Definitions:

Financial Leverage

Applying borrowed resources to escalate the potential profits of an investment.

EPS

Earnings Per Share, a measure of a company's profitability that divides its net profit by the number of outstanding shares.

ROE

Return on Equity; a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses its assets to generate profit.

ROCE

Return on Capital Employed, a financial ratio that measures a company's profitability and the efficiency with which its capital is used.