What Is the Minimum Amount of Revenue an Operating Segment

question 44

Multiple Choice

What is the minimum amount of revenue an operating segment must have to be considered a reportable segment?

• A) $12,000.
• B) $15,000.
• C) $15,500.
• D) $16,200.
• E) $16,700.

---

Definitions:

Variable Costs

Expenditures that adjust in relation to the business's output or operational intensity.

Fixed Expenses

Costs that do not fluctuate with the volume of sales or production levels, remaining constant even as business activities change.

Unit Selling Price

The price for which a single unit of a product is sold, excluding any discounts or allowances.

Contribution Margin

The amount of revenue from sales that exceeds variable costs, indicating how much contributes to covering fixed costs and generating profits.