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Segment Margin
This is the amount in which a business segment in a company contributes toward the common or indirect cost of the company. Therefore, it represents that segment's contribution to the overall profitability of the company. It is usually measured as segment sales minus direct segment costs.
It's a small amount of money which is used for initial market research or product development for a new venture.
Preferably all customers will settle within the agreed terms of trade. If this doesn't happen a company needs to have in place agreed procedures for dealing with overdue accounts.
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