Segment margin income statement

Segment margin income statement is a product line income statement that contains no allocation of common fixed costs. Only direct fixed costs that can be traced to specific product lines are subtracted from the product line's contribution margin. All common fixed costs remain unallocated and are shown only under the company total.

Definitions

According to Managerial Accounting by Braun, Tietz (5th edition),

Segment margin income statement. A product line income statement that contains no allocation of common fixed costs. Only direct fixed costs that can be traced to specific product lines are subtracted from the product line's contribution margin. All common fixed costs remain unallocated and are shown only under the company total.