The Absolute Profitability of a Business Segment Is Determined By

question 44

Multiple Choice

The absolute profitability of a business segment is determined by:

• A)subtracting the variable costs of the business segment from its revenue.
• B)subtracting the avoidable costs of the business segment from its revenue.
• C)subtracting the full costs, including allocations of common fixed costs, of the business segment from its revenue.
• D)finding the larger of the segments full costs or its revenues.

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