he following relates to Department no.2 of Niekut Corporation Segment contribution margin: 472,500 Profit margin controllable by segment manager 87,000 Segment profit margin 23,200 The amount that would be used to evaluate the performance of department no. 2's manager is:

he following relates to Department no.2 of Niekut Corporation Segment contribution margin: 472,500 Profit margin controllable by segment manager 87,000 Segment profit margin 23,200 The amount that would be used to evaluate the performance of department no. 2's manager is:

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 24E: Refer to the data in Exercise 7.22. The support departments are ranked in order of highest cost to...

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

The following relates to Department no.2 of Niekut Corporation

Segment contribution margin: 472,500

Profit margin controllable by segment manager 87,000

Segment profit margin 23,200

The amount that would be used to evaluate the performance of department no. 2's manager is:

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