4. Which margin is most useful in evaluating segment management?a) Segment marginb) Contribution marginc) Controllable contribution margind) ROA margin5. The Contribution Margin can be calculated under the Absorption Costing method.a) Trueb) False Net salesLess:Less:Less:Less:Net incomeXY CORPORATE SUMMARY REPORTCONTRIBUTION INCOME STATEMENTSFor the Year Ending December 31, 20XXVariable product costVariable SG&ATotal variable costControllable contribution marginControllable fixed costsControllable contribution marginUncontrollable fixed costsSegment marginGeneral corporate costsCompany TotalWhich division has the higher contribution margin? >>>>Which division has the higher contribution margin ratio?1,400,000450,000225,000675,000725,000250,000540,000225,000315,000250,00065,000Which margin is most useful in evaluating segment viability? >>>>Which margin is most useful in evaluating segment management? >>>>Division X600,000250,00025,000275,000325,00085,000240,00075,000165,000Division Y800,000200,000200,000400,000400,000100,000300,000150,000150,000BODYXSegmentControllable

The contribution margin is a financial metric that measures the amount of revenue that is available…

4. Which margin is most useful in evaluating segment management? a) Segment margin b) Contribution margin c) Controllable contribution margin d) ROA margin 5. The Contribution Margin can be calculated under the Absorption Costing method. a) True b) False

4. Which margin is most useful in evaluating segment management? a) Segment margin b) Contribution margin c) Controllable contribution margin d) ROA margin 5. The Contribution Margin can be calculated under the Absorption Costing method. a) True b) False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

4. Which margin is most useful in evaluating segment management?
a) Segment margin
b) Contribution margin
c) Controllable contribution margin
d) ROA margin

5. The Contribution Margin can be calculated under the Absorption Costing method.
a) True
b) False

Net sales
Less:
Less:
Less:
Less:
Net income
XY CORPORATE SUMMARY REPORT
CONTRIBUTION INCOME STATEMENTS
For the Year Ending December 31, 20XX
Variable product cost
Variable SG&A
Total variable cost
Controllable contribution margin
Controllable fixed costs
Controllable contribution margin
Uncontrollable fixed costs
Segment margin
General corporate costs
Company Total
Which division has the higher contribution margin? >>>>
Which division has the higher contribution margin ratio?
1,400,000
450,000
225,000
675,000
725,000
250,000
540,000
225,000
315,000
250,000
65,000
Which margin is most useful in evaluating segment viability? >>>>
Which margin is most useful in evaluating segment management? >>>>
Division X
600,000
250,000
25,000
275,000
325,000
85,000
240,000
75,000
165,000
Division Y
800,000
200,000
200,000
400,000
400,000
100,000
300,000
150,000
150,000
BOD
Y
X
Segment
Controllable

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