Managerial Accounting, v1.0: "Chapter 11, Section 3: Comparing Segmented Income for Investment Centers"

Games Inc. President’s starting point for evaluating investment centers is with reviewing segmented income for each investment center (or division). Segmented income is segment revenues minus segment expenses. She is interested in the level of profit that each of the three divisions generates, and segmented income gives her this information, but as you will see there are limitations to using this method solely.