The difference between the profit margin controllable by a segment manager and the segment profit margin is caused by:

variable operating expenses.

sales revenue.

fixed expenses traceable to the segment but controllable by others.

allocated common expenses.

fixed expenses controllable by the segment manager.

Question

Business

Maximillian Charles

25 November, 04:28

The difference between the profit margin controllable by a segment manager and the segment profit margin is caused by:

variable operating expenses.

sales revenue.

fixed expenses traceable to the segment but controllable by others.

allocated common expenses.

fixed expenses controllable by the segment manager.

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Answers (1)

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Vaughn Faulkner · Answer 1

The fixed expenses that can be traced to the segment but also controllable by others.

Explanation:

The answer to the question is:

The fixed expenses that can be traced to the segment but also controllable by others.

This fixed expenses controllable by others is also called a non-controllable expense for the segment manager. This is because it cannot be unilaterally determined or controlled by a department, a segment or an individual manger. It is open to external control or input from other segments.

However, the other items: Variable operating expenses, sales revenue, fixed expenses controllable by the segment manager and allocated common expenses are tracked to and controlled by the segment manager.