Segment Margin & Decision-Making in Accounting


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question 1 of 3

Calculate the contribution margin given the following information: sales = $10,000; variable costs = $4,000; avoidable fixed costs = $1,400; unavoidable fixed costs = $1,600.

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1. Calculate the segment margin given the following information: sales = $20,000; variable costs = $12,000; avoidable fixed costs = $2,000; unavoidable fixed costs = $3,000.

2. Which of the following is NOT an important consideration in calculating segment margin?

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About This Quiz & Worksheet

Using the quiz/worksheet combo, see what you comprehend about segment margin and decision-making in accounting. You need to know how to calculate both the contribution margin and segment margin for the quiz.

Quiz & Worksheet Goals

These tools help test your understanding of the following topics:

  • An example of a fixed cost
  • Important considerations when calculating segment margin
  • Something that would represent a variable cost
  • Finding the contribution margin
  • Calculating the segment margin

Skills Practiced

  • Information recall - access the knowledge you have gained about what you need to know when calculating segment margin
  • Problem solving - use acquired knowledge to find the contribution margin
  • Reading comprehension - ensure that you draw the most important information from the lesson on decision-making and segment margin in accounting

Additional Learning

Get more comfortable with these financial topics using the lesson, Segment Margin & Decision-Making in Accounting. Some objectives you can complete because of this lesson include:

  • Compare and contrast fixed cost and variable cost
  • Review characteristics of a fixed cost
  • Analyze examples of a segment margin