Biology Forums - Study Force

A segment of an organization is any part of the organization that management wishes to evaluate. Segment margin income statements highlight the elements under the segment manager's control.

Required:

a.	What is "segment margin" and how is it calculated?

b.	What is the difference between "segment margin" and a segment's "net operating

income?"

c.	Why are common allocated fixed costs an issue in evaluating the performance of a

segment manager?

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