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Variable Costing and Segment Reporting: Tools For Management
Variable Costing and Segment Reporting: Tools For Management
PowerPoint Authors:
Susan Coomer Galbreath, Ph.D., CPA
Charles W. Caldwell, D.B.A., CMA
Jon A. Booker, Ph.D., CPA, CIA
Cynthia J. Rooney, Ph.D., CPA
McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
6-2
cost.
cost.
No computer No computer
division means . . . division manager.
6-15
Segment Margin
The segment margin, which is computed by
subtracting the traceable fixed costs of a segment
from its contribution margin, is the best gauge of the
long-run profitability of a segment.
Profits
Time
6-18
Failure to trace
costs directly Inappropriate
allocation base
End of Chapter 06