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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
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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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
Transcribed Image Text: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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