The Absolute Profitability of a Business Segment Is Determined By

Multiple Choice

The absolute profitability of a business segment is determined by:

A) subtracting the variable costs of the business segment from its revenue.
B) subtracting the avoidable costs of the business segment from its revenue.
C) subtracting the full costs, including allocations of common fixed costs, of the business segment from its revenue.
D) finding the larger of the segments full costs or its revenues.