Which of the Following Is Not True for an Operating

question 24

Multiple Choice

Which of the following is not true for an operating segment according to U.S. GAAP?

• A) Discrete financial information generated by the internal accounting system is available.
• B) The segment recognizes revenues and incurs expenses.
• C) The segment is regularly reviewed by a chief decision maker to assess performance decisions.
• D) The segment is regularly reviewed by a chief decision maker to make resource allocations.
• E) An organizational unit cannot be an operating segment if all of its operating transactions are only with other segments of the organization.

Comprehend how the Cost of Goods Sold (COGS) schedule is prepared and its components.

Understand the Schedule of Cost of Goods Manufactured and the calculation of total raw materials available.

Distinguish between different types of costs and their treatment in manufacturing accounts.

Learn the appropriate journal entries for various manufacturing and costing transactions.

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Definitions:

Diversification Strategy

A growth strategy where a company expands into new markets or products that are distinct from its core business.

Regression Analysis

A statistical method used for estimating the relationships among variables, often used to predict the outcome of a dependent variable based on the changes in one or more independent variables.

SWOT Analysis

A strategic planning tool used to identify a company's internal Strengths and Weaknesses, as well as external Opportunities and Threats.

Data Mining

The practice of examining large databases in order to generate new information or find hidden patterns and insights.