Which One of the Following Is True Concerning Discontinued Operations

question 80

Multiple Choice

Which one of the following is true concerning discontinued operations?

• A)It relates primarily to product changes in a company.
• B)The gain or loss associated with the disposal is shown separately as a component of continuing operations on the income statement.
• C)It is reported with 'other revenues and losses' on the company's income statement.
• D)One of two separate disclosures required is income or loss from the segment's operations from the beginning of the current accounting period to the date of disposal.

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Definitions:

Indirect Materials

Materials used in the production process that are not directly traceable to individual products, like lubricants and cleaning supplies.

Indirect Labor

Workers who support the production process but do not directly contribute to the manufacturing of the product, such as maintenance and supervisory staff.

Inventoriable Costs

Expenses directly tied to the production of goods, including materials and labor, capitalized as inventory until sold.

Direct Materials

Raw materials that are directly traceable to the manufacturing of products and significantly contribute to the product's cost.