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Which of the following statements about the segment margin is not true? In preparing a segmented income statement, the variable expenses are deducted from sales to yield the contribution margin for each segment. The segment margin is obtained by deducting the common fixed costs that have been allocated to a segment from that segment's contribution margin. The segment margin represents the margin available after a segment has covered all of its own costs. The segment margin is the best gauge of the long-run profitability of a segment because it includes only those costs that are caused by the segment.

Respuesta :

Answer: The segment margin is obtained by deducting the common fixed costs that have been allocated to a segment from that segment's contribution margin

Explanation:

Segment margin is referred to the net profit or the net loss that a particular segment of a business makes. Segment margin is used to know segments that are performing well.

It is also used to know the long-run profitability of a particular segment as it shows the margin that is available after the cost has been covered by a segment.

Based on the above illustration, the statement that isn't true will be "the segment margin is obtained by deducting the common fixed costs that have been allocated to a segment from that segment's contribution margin".

This is false as segment margin is gotten after the traceable fixed costs of a segment has been subtracted from the contribution margin of that particular segment.

Segment margin is cited as the web profit or the web loss that a selected segment of a business makes.

Segment Margin

Segment margin is employed to understand segments that are performing well.

It is also accustomed to knowing the long-run profitability of a specific segment because it shows the margin that's available after the value has been covered by a segment.

Based on the above illustration, the statement that may not be true is going to be "the segment margin is obtained by deducting the common fixed costs that are allocated to a segment from that segment's contribution margin".

This is a falsehood as segment margin is gotten after the traceable fixed costs of a segment have been subtracted from the contribution margin of that individual segment.

Thus, the segment margin is obtained by deducting the common fixed costs that are allocated to a segment from that segment's contribution margin.

Find out more information about Segment margin here:

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