The Following Segment Information Relates to Tolkein Enterprises

question 9

Multiple Choice

The following segment information relates to Tolkein Enterprises:

Applying the tests for identifying a reportable segment in accordance with AASB 8, which of the above segments qualify for reporting and do the segments satisfy the 75 per cent test?

• A) Reportable segments: Mechanical engineering and retailing, 75 per cent test satisfied. No
• B) Reportable segments: Industrial manufacturing, mechanical engineering and retailing; 75 per cent test satisfied. Yes
• C) Reportable segments: Project consulting, mechanical engineering and retailing; 75 per cent test satisfied. Yes
• D) Reportable segments: Industrial manufacturing, project consulting, mechanical engineering and retailing; 75 per cent test satisfied. No
• E) None of the given answers.

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Definitions:

Regression Line

A line that best fits a set of data points, representing the average relationship between an independent variable and a dependent variable.

Sum Of The Squared Residuals

The total value obtained by summing the squares of the differences between observed and predicted values, used in statistical analysis to measure the fit of a model.

Data Points

Individual measurements or observations collected during data gathering.

Residual Term

The difference between observed values and the estimated values in a regression model.