Which of the Following Statements Is True Regarding a Company's

question 29

Multiple Choice

Which of the following statements is true regarding a company's segment margin?

• A) It is primarily used to make short-term decisions such as cost-volume-profit (CVP) analysis and special order decisions.
• B) It ignores all fixed costs.
• C) It is primarily a measure of long-term profitability.
• D) It should not be used to make decisions on whether or not to drop a product line.

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Definitions:

Durability

The ability of an object or material to withstand wear, pressure, or damage.

Rewards Motivate

Rewards motivate refers to the concept that providing incentives or benefits can encourage individuals to perform desired actions or behaviors.

Ability Rewards

Compensation or recognition given to individuals based on their skills, talents, or competencies.

Sexual Harassment

Unwanted sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.