Segment Reporting and Decentralization

. [pic] Subject: Cost and Management Accounting Prepare a segment income mastery using the contribution format, and explain the difference amidst traceable fixed costs and common fixed cost. plane section reporting and Profitability Analysis A different kind of income statement is required for evaluating the performance of a profit or coronation center, something that emphasizes segments rather than the performance of the company as a whole. A segment is any part or activity of an constitution about which a manager seeks cost, revenue, or profit data. A segment can be an individual store, a gross sales territory and a service center. There are both keys to building segmented income statements: A contribution format should be used because it separates fixed from variable costs and it enables the calculation of a contribution margin. Traceable fixed costs should be dislocated from common fixed costs to enable the calculation of a segment margin. Levels of Segmented Statements Webber, Inc.

Divisions Webbers defined as Divisions Webbers segments defined as television system Division Webbers Segments Defined as sales Channels for One Product Line, Big Screen, of the Television Division |Income Statement | | |Big Screen |Retail Stores |Catalog Sales | |Sales |100,000 |70,000 |30,000 | |Variable Costs |55,000 |42,000 |13,000 | |CM |45,000 |28,000 |17,000 | |Traceable FC |16,000 |10,000... If you extremity to get a full essay, order it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.