When Defining a Reportable Segment, Which of the Following Conditions

question 56

Multiple Choice

When defining a reportable segment, which of the following conditions would be sufficient to allow a company to combine two operating segments for purposes of testing?

• A) The products sold by each segment are produced in the same plant.
• B) Both segments have several customers in common.
• C) The segments may sell different products, but they have a similar economic environment and similar business activities.
• D) Both segments are required to adhere to U.S. Department of Labor regulations regarding immigration laws.
• E) Both segments are owned by the same parent company.