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If a product has a positive segment margin but is not as profitable as other products, what should ...
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If a product has a positive segment margin but is not as profitable as other products, what should ...
If a product has a positive segment margin but is not as profitable as other products, what should managers do? What if the segment margin is negative?
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Managerial Accounting
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th
Author:
Davis
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If the segment margin is positive, the operation should be kept until a better use can be found for its resources. If the segment margin is negative, the operation should be dropped in order to increase profit.
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The segment margin is the contribution margin of a particular segment less any direct fixed costs.
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A segment margin income statement includes all allocated costs in the calculation of the segment margin.
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coleshear
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Helped a lot
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sudenzia
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Good timing,
thanks!
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