The Absolute Profitability of a Segment Is Measured by Subtracting

question 50

True/False

The absolute profitability of a segment is measured by subtracting the segment's avoidable costs from its revenues.

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Definitions:

Internal Cause

An explanation of behavior or events attributing to factors within a person such as personal decisions, efforts, or characteristics.

External Cause

Factors outside an individual that can lead to certain outcomes or effects.

Consistent Behavior

A pattern of actions or responses that remains uniform over time in a particular individual or situation.

Attribution

The process of explaining one's own behavior and the behavior of others.