What is the Segment Margin?
The segment margin sometimes referred to as the contribution by profit center or CPC, is a measure of the profitability of a profit center after deducting all costs traceable to it.
Since it includes non controllable fixed costs, it is a useful measure of the overall performance of the profit center in the longer term.
Segment margin is used when producing a Contribution Margin Income Statement to monitor and measure the contribution made by a profit center.
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