A Properly Constructed Segmented Income Statement in a Contribution Format

question 232

Multiple Choice

A properly constructed segmented income statement in a contribution format would show that the segment margin of the Consumer business segment is:

• A)$152,000
• B)$76,000
• C)$17,000
• D)$179,000

---

Definitions:

Free-Flow Layout

A store or workplace arrangement where fixtures and merchandise are grouped in an informal, non-linear manner to encourage exploration by customers.

Hat Shop

A retail store specializing in selling hats and headwear.

Process Layout

An arrangement of resources in a manufacturing or service system according to the sequence of operations that need to be performed.

Competitive Advantage

The facet of a business that it does better than all of its competitors.