Question

The performance evaluation of a profit center is typically based on its A. return on assets. B. static budget variance. C. segment margin. D. return on investment.

Answer 1

Answer: C segment margin

Explanation:

Segment margin is the amount of net profit or net loss raised by a part of a business. It is useful to trace segment margins (especially on a trend line) in order to learn which parts of a business is do well or otherwise.