Consider the Following List of Operating Segments and Segment Assets

question 14

Multiple Choice

Consider the following list of operating segments and segment assets for the current reporting period relating to Arwen Ltd,and answer the question below. $$\begin{array} { | l | r | } \hline \text { Operating segment } & \begin{array} { l } \text { Segment assets } \\\text { in \$ }\end{array} \\\hline \text { Clothing } & 250000 \\\hline \text { Household } & 350000 \\\hline \text { Fast food } & ? \\\hline \text { Multimedia } & 880000 \\\hline \text { Other operations } & 175000\\\hline\end{array}$$ What is the minimum asset amount (rounded to the nearest $1000) that the fast food segment should have for that segment to be considered a reportable segment according to AASB 8?

• A) $83 000
• B) $106 000
• C) $174 000
• D) $184 000

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Definitions:

Peak-period Demand

The highest level of demand for a product or service within a specific time frame, often requiring additional resources.

Logistics Department

A division within a company that is responsible for overseeing the flow of goods and materials from suppliers to the end customer, including storage and transportation.

Operating Divisions

Separate segments or areas of a business that perform operations or services distinct from the company's primary business.

Variable Costs

Expenses that directly fluctuate with the amount of goods produced or the extent of services offered.