Segment Margin Is a Better Measure of the Long-Run Profitability

question 10

True/False

Segment margin is a better measure of the long-run profitability of a segment than contribution margin.

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Definitions:

MyPlate Icon

A visual guide created by the USDA to help Americans understand and follow healthy eating patterns, depicting the recommended dietary proportions of fruits, vegetables, grains, protein foods, and dairy.

Vegetables

Edible plants or parts of plants, such as leaves, stems, roots, and seeds, commonly consumed in diets and known for nutritional benefits.

Essential Nutrients

Nutrients that cannot be synthesized by the body and must be obtained from the diet, including certain amino acids, fatty acids, vitamins, and minerals.

Kilocalories

A unit of energy measurement in nutrition, commonly called a calorie, equivalent to 1000 small calories.