The Charlton Co

question 83

Multiple Choice

The Charlton Co. had three operating segments with the following information: In addition, revenues generated at corporate headquarters are $1,500.What is the minimum amount of revenue that each of these segments must earn to be considered separately reportable?

• A) $2,162.
• B) $2,615.
• C) $2,770.
• D) $3,068.
• E) $3,223.

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Definitions:

Frosting

A sweet, often creamy glaze made of sugar with liquid (such as water or milk) and sometimes flavored, used to coat or decorate baked goods.

Prime Costs

The combined costs of direct materials and direct labor that are directly involved in the manufacturing of a product.

Conversion Costs

Expenses incurred during the transformation of raw materials into finished goods, typically including direct labor and manufacturing overhead costs.

Neither

Not one nor the other of two specified things, typically used to express a negation.