Question

The difference between the profit margin controllable by a segment manager and the segment profit margin is caused by:

Answer 1

Answer:

The fixed expenses that can be traced to the segment but also controllable by others.

Explanation:

The answer to the question is:

The fixed expenses that can be traced to the segment but also controllable by others.

This fixed expenses controllable by others is also called a non-controllable expense for the segment manager. This is because it cannot be unilaterally determined or controlled by a department, a segment or an individual manger. It is open to external control or input from other segments.  

However, the other items: Variable operating expenses, sales revenue, fixed expenses controllable by the segment manager and allocated common expenses are tracked to and controlled by the segment manager.