Multiple Choice
Which of the following statements is true regarding a company's segment margin?
A) It is primarily used to make short-term decisions such as cost-volume-profit (CVP) analysis and special order decisions.
B) It ignores all fixed costs.
C) It is primarily a measure of long-term profitability.
D) It should not be used to make decisions on whether or not to drop a product line.
Correct Answer:
Verified
Correct Answer:
Verified
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