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The value used to evaluate how the mananger of a segment is performing is the segment...

The value used to evaluate how the mananger of a segment is performing is the segment margin (contribution of the segment) T/F

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The manager of a segment is evaluated based on segment margin. Segment margin is calculated after deducting variable cost from sales and then deducting traceable fixed costs to a segment. It is also known as controllable margin since it is within the control of the manager for a particular segment. General overheads allocated are not deducted from the segment since it is uncontrollable cost. It is more meaningful to evaluate based on segment margin rather than overall net income of the firm.

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