Segment Data

question 29

Multiple Choice

Segment data:

• A) can be used for vertical, but not horizontal analysis.
• B) is gathered from invoice data.
• C) is only useful by product line.
• D) analysis is required by GAAP.

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Definitions:

Incremental Manufacturing Cost

The additional cost incurred by producing one more unit of a product.

Production Increase

An uptick in the amount of products manufactured by a company over a set period.

Contribution Margin

The amount of revenue from sales that exceeds the variable costs associated with producing a good or service.

Relevant Range

The extent of activity or volume over which the specific cost assumptions and behaviors are considered valid.