For Internal Decision-Making Purposes,Falcon Corporation Identifies Its Industry Segments by Geographical

question 35

Essay

For internal decision-making purposes,Falcon Corporation identifies its industry segments by geographical area.For 2014,the total revenues of each segment are provided below.There are no intersegment revenues.
Required:
1.Which operating segments will be considered reporting segments based on the revenue test?
2.What is the test value for determining whether a sufficient number of segments are reported?
3.What will be the minimum number of segments that must be reported?

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Definitions:

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Rare Job Skills

Rare job skills are unique or uncommon abilities that are highly valued in the job market and often lead to competitive advantages for those who possess them.

Work Attitude

The feelings and perceptions that an employee has towards their work, influencing their motivation and job performance.

Employee Referrals

A recruitment strategy where current employees recommend prospective candidates for positions within the organization.