profitability measure used to evaluate the financial performance of a business segment (i.e., division, territory, product line). It equals segmental revenue less related product costs and traceable operating expenses attributable to that segment. In preparing a contribution margin income statement, segment margin equals net revenues less variable manufacturing and selling costs less controllable fixed costs by the segment manager and others. Segment earnings do not include common costs-those costs not logically or practically assigned to the business segment (i.e., president's salary, interest expense).
profitability measure used to evaluate the financial performance of a business segment (i.e., division, territory, product line). It equals segmental revenue less related product costs and traceable operating expenses attributable to that segment.
