Segment Profitability Analysis May Be Used to Evaluate the Profitability

question 61

Multiple Choice

Segment profitability analysis may be used to evaluate the profitability of:

• A)Divisions.
• B)Sales territories.
• C)Product lines.
• D)All of these are correct.

---

Definitions:

Indirect Cost

Expenses not directly linked to the production of goods or services, such as administrative and marketing costs.