22 Which of the following statements is true regarding a company's segment margin? *It is primarily used to make short-term decisions such as cost-volume-profit analysis and special orderdecisions.O It ignores all fixed costs.O It is primarily a measure of long term profitability.O It should not be used to make decisions on whether or not to drop a product line.

Solution: The true statement regarding a company's segment margin is that "It is primarily used to…

Which of the following statements is true regarding a company's segment margin? It is primarily used to make short-term decisions such as cost-volume-profit analysis and special orde decisions. D It ignores all fixed costs. O it is primarily a measure of long term profitability. O it should not be used to make decisions on whether or not to drop a product line.

Which of the following statements is true regarding a company's segment margin? It is primarily used to make short-term decisions such as cost-volume-profit analysis and special orde decisions. D It ignores all fixed costs. O it is primarily a measure of long term profitability. O it should not be used to make decisions on whether or not to drop a product line.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 4DQ: A company accepts incremental business at a special price that exceeds the variable cost. What other...

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