The Key Decision Points in Identifying an Entity's Component as an Operating

question 5

Multiple Choice

The key decision points in identifying an entity's component as an operating segment include all the following criteria, except for:

• A) the component's manager is part of the CODM.
• B) discrete financial information are available for the component.
• C) the component's operating results are regularly reviewed by the CODM.
• D) the component is able to generate revenue and incur expenses from its business activities.

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Definitions:

Human Capital

The collective skills, knowledge, and other intangible assets of individuals that can be used to create economic value.

Projection

The act of estimating or forecasting future conditions, trends, needs, or values based on current data or trends.

HR Estimates

Predictions or assessments regarding human resources aspects, such as staffing levels, made to support planning and decision-making.

Short-Run Forecast

A prediction of future events or trends that is focused on a relatively immediate time frame.