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A health plan can use segment margins to evaluate the profitability of its profit centers.

A health plan can use segment margins to evaluate the profitability of its profit centers. One characteristic of a segment margin is that this margin

A.

Is the portion of the contribution margin that remains after a segment has covered its direct fixed costs

B.

Incorporates only the costs attributable to a segment, but it does not incorporate revenues

C.

Considers only a segment's costs that fluctuate in direct proportion to changes in the segment's level of operating activity

D.

Evaluates the profit center's effective use of assets employed to earn a profit

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