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

Ray Mckinney

Business

4 December, 04:01

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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Paxton Cameron · 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.